Spending on information technology (IT) by North American banks is expected to reach $62.2bn in 2015, according to a report by Celent.
The IT spending, which recorded $56.9bn in 2013, is expected to rise by 4.5% to reach $59.5bn in 2014 and will further grow marginally by 4.6% to finally reach $62.2bn in 2015.
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According to the report titled ‘IT Spending in Banking: A North American Perspective,’ the growth is driven by retail banking spending that includes monetisation of digital channels, enhancements to the user experience, and omnichannel sales and service endeavours.
The report also found that wholesale banking spending will continue to rise, following an initiative by midsize banks to upgrade aging cash and treasury management solutions.
Celent banking group research director and author of the report, Jacob Jegher, said the good news is that new investment spending is skyrocketing and that maintenance allocations are on the decline.
"It’s still quite challenging to get projects funded, however. Projects are encouraged but highly scrutinized, and they come with the requirement of a fast return on investment," Jegher added.
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