Large North American financial institutions will spend $73.8 billion on IT improvements as they continue to invest in transformative technologies, according to a new report from Technology Business Research. The report was based on surveys of IT and business executives at 201 North American financial organizations with more than $1 billion in total assets, as well as 35 financial technology vendors.
According to the firm, the overall 2014 IT budget growth rate in financial institutions hovers at 2%, and large banking organizations are increasing investment in multichannel banking and data management to improve system performance to ultimately meet customer demand for improved service and an enhanced user experience.
Along those lines, those polled expected to spend an average of $1.5 million next year on mobile and online banking projects and nearly $900,000 on self-service tech.
According to survey results, banks favor vendors established in the financial services industry and with which they have pre-existing relationships to implement the required improvements.
“IT is clearly becoming more strategic for financial services companies, helping them maintain the status quo and acting as an accelerator for strategic business shifts,” said TBR Senior Analyst Allan Krans. “Although budget increases are modest, we see strong commitment and funding for IT projects that positively impact the customer experience occurring during the next 18 months.”