Total bank IT spending across North America, Europe and Asia-Pacific will grow to $173.3 billion in 2012. Whilst this is approximately 2.8 per cent higher than 2011, it also indicates that IT spending growth is slightly on the decline.
In a new report, IT Spending in Banking: A Global Perspective, analyst firm Celent says that the majority of the growth is coming from Asia-Pacific banks: spending by banks in this region will grow by six per cent in 2012 to $59.4 billion. This will continue in 2013 to reach $62.3 billion. North American banks, specifically those in the US, are reporting more dismal results. Their spending will grow by a mere 2.4 per cent in 2012 to $54.7 billion. This figure will increase gradually to 2.9 per cent in 2013 to $56.3 billion. European banks are in far deeper trouble and are reporting little to no growth. Spending will grow 0.3 per cent in 2012 to $59.2 billion. Growth will continue to be flat through 2013, increasing by just 0.4 per cent to $59.5 billion.
“From an IT spending perspective, the next couple of years are going to be rocky,” says Jacob Jegher, senior analyst with Celent's Banking Group and co-author of the report. “The good news is that a slight turnaround is in sight. When examining the sum of the three regions, IT spending is expected to grow by 3.1 per cent in 2013 and 3.4 per cent in 2014.”
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