FRAMINGHAM, Mass.--(BUSINESS WIRE)--Worldwide spending on information technology (IT) by financial services firms will be nearly $500 billion in 2021, growing from $440 billion in 2018, according to new data from a series of Financial Services IT Spending Guides from International Data Corporation (IDC):
- Worldwide Banking IT Spending Guide, Version 2, CY 2Q18 (IDC #US41396018)
- Worldwide Insurance IT Spending Guide, Version 2, CY 2Q18 (IDC #US41798018)
- Worldwide Capital Markets IT Spending Guide, Version 2, CY 2Q18 (IDC #US41797618)
- Worldwide Financial Services Risk IT Spending Guide, Version 2, CY 2Q18 (IDC #US41396718)
Worldwide banking IT spend makes up more than half of the total financial services IT spend with the Asia/Pacific, Latin America, and the United States regions exhibiting above average growth, led primarily by strong software spend across all regions. Third-party spending on hardware, software, and IT services will be approximately 70% of the total IT spend, while the remaining 30% is reserved for internal IT spend for institution-employed IT staff for internal development, maintenance, and integration.
Worldwide financial services risk IT spending is predicted to grow from $80 billion in 2018 to $94 billion in 2021, fueled by technology investment to support increased requirements for fraud, security, and compliance solutions. This represents almost 20% of total worldwide financial services IT spending.
The Worldwide Financial Services IT Spending Guides also include key IDC 3rd Platform and Innovation Accelerator forecasts to reflect the significance of Digital Transformation (DX) in current and planned IT investments.
"The healthy IT spend in the worldwide financial services market is primarily attributed to investment in three key aspects – improving the customer experience; shoring up and responding to the myriad fraud, security, and compliance needs; and modernizing the legacy core systems, including payments, core processing, lending, claims, policy administration, and trading," said Karen Massey, research manager, IDC Financial Insights. "We are seeing an uptick in transformational IT projects and investment in DX enabling solutions that is changing how financial institutions approach and leverage IT."
IDC Financial Insights Spending Guides provide worldwide coverage for the following sectors: Banking, Capital Markets, and Insurance. These industry spending guides are developed and updated through IDC Financial Insights' ongoing primary and secondary research, along with direct communication with industry experts, banking executives, and vendors. The Worldwide Financial Services IT Spending Guides are the benchmark for consistent, detailed market data on the industry, providing a profile of IT spending across 80+ functional processes, eight geographic regions, four institution types, 17 financial services segments, four technology categories, and four company size tiers. This comprehensive database is delivered via pivot table format to allow the user to easily view meaningful information about financial services technology solutions.
For more information about IDC Financial Insights Spending Guides, please contact Karen Massey at email@example.com.
About IDC Industry Spending Guides
IDC Industry Spending Guides provide a granular view of key technologies from a regional, institution type, institution tier, functional process, line of business, and technology type perspective. The Spending Guides are delivered via pivot table format allowing the user to easily view meaningful information from a myriad of data points.
Learn more about IDC Industry Spending Guides by visiting www.idc.com/customerinsights.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company that activates and engages the most influential technology buyers. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn.