The need to raise revenue and consumer trust while managing risk and complying with a growing regulatory burden will help spark global growth in retail banking spend in the next few years.
That's a prediction from Ovum, which said financial institutions across the world will be spending $132 billion on retail banking technology five years from now, an increase of 24% from current levels.
Internet-access banking services alone will grow 33% by 2015, to $9.7 billion, Ovum said. "There is a strong focus on online platforms and their extension onto mobile devices and tablets, given their ability to service clients at a lower cost," said senior analyst Jaroslaw Knapik.
He said growing compliance costs also will drive investment in tools that increase efficiencies, such as data management, business intelligence and analytics, as well as risk management and anti-fraud tools, accounting for a predicted $7.2 billion in global spend by 2015.
Investment in branch technology in less-saturated markets will result in a 49% spending growth in emerging Asia Pacific markets and 36% in the Middle East and Africa, to $12.7 billion and $5.5 billion, respectively, Ovum said.
Overall retail banking technology spending in the highly developed Western Europe and North American markets, meanwhile, will rise 19% to $40.1 billion and 23% to $50.2 billion, respectively, between 2010 and 2015, Ovum said.