According to a series of new IDC Financial Insights Worldwide IT Spending Guides, financial services IT spending will reach almost $480-billion worldwide in 2016 with a five-year compound annual growth rate (CAGR) of 4,2%.
The new series of guides for banking, capital markets, insurance, and financial services risk serve as an industry benchmark for consistent, detailed market data on the industry. The annual guides provide a profile of IT spending across more than 80 functional processes, and a variety of geographic regions, institution types, financial services segments, technology categories, and company size tiers.
“This year, we are excited to introduce a different view of U.S. financial services spending on 3rd Platform technologies – cloud, mobile and big data/analytics,” says Karen Massey, senior research analyst, IDC Financial Insights. “These foundational components of digital transformation (DX), have significantly impacted IT budgets in 2016. Forward thinking financial institutions understand the value of leveraging these technologies to better meet the demands of performance, efficiency, compliance, and competition.”
Key highlights of the new spending guides include:
* The addition of US 3rd Platform – cloud, mobile, big data/analytics – IT spending forecasts for banking, capital markets and insurance to reflect the significance of these technologies in financial services. (Additional 3rd Platform forecasts will be published in 2016).
* Banking IT spending accounts for the largest portion of financial services IT spending at more than $275-billion worldwide, as well as delivering the largest growth at 4,5%.
* Financial services risk management will reach $85-billion worldwide in 2016 across the three sectors, with a growth rate of more than 7%.