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.
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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.
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