Information technology spending by North American financial institutions is on the rise after two challenging years, according to a new report from Celent.
The Boston-based financial research and consulting firm said information it gathered from banks across the continent drove its prediction that IT spending will grow from $51.4 billion last year to $53.4 billion this year. Another 4.6% increase to $55.9 billion is expected in 2012, extending to $58.3 billion in 2013, Celent said.
Helping to drive the increase is a jump in retail banking IT, with consumer online banking, PFM and mobile banking solutions seeing rising investment. Wholesale banking, new innovations and external software spend also showed increases.
Meanwhile, maintenance of existing technology infrastructure continues to command about three-quarters of IT spending, about $40 billion, the think firm said.
"After a very challenging couple of years, investments are steadily climbing in both retail and corporate banking," said Celent senior analyst and report author Jacob Jegher. "It's still difficult to get new projects funded because most banks have laundry lists of enhancements and strategic initiatives that they would like to take on."