Worldwide IT spending in banking sector is expected to grow at a compound annual growth rate (CAGR) of 5.2% between 2010-2015, according to a report by IDC.
The report, "Worldwide IT Spending 2010-2015: Worldwide Banking IT Spending Guide, 1H12 Update" provides an update of the earlier forecast, adjusting the external IT spending though the internal IT investment across the regions and solution areas remain unchanged.
The growth in spending in this sector will be triggered by positive increases across North American, Latin America and the Middle East.
IT spending on banking sector in Europe is expected to slightly decline to 3.6% due to eurozone crisis, compared to the previous forecast of 4% growth in spending.
In North American region spending will be 1% more than the previous forecast to 3.7% as US banks emerge from the financial crisis and Canadian banks continue their strategic investments, the report found.
The initial investments in banking infrastructure continue to be strong in Latin America and the Middle East regions. In these regions, IT spending is expected to increase 10% in the forecast period, according to IDC Financial Insights.
IT spending forecasts are unchanged from the previous forecast for the Asia/Pacific region which is expected to grow at 7.9% per year.
IDC said the categories under which Banks will invest in their IT infrastructure include, compliance and control, credit risk, enterprise risk management, financial crimes, information security, and liquidity and asset liability management.
IDC Financial Insights vice president Jeanne Capachin said the global economy will continue to flounder in 2012 as the crisis in Western Europe casts a long shadow.
"However, there are bright spots as the Middle East remains a strong growth market for financial services technology and the adoption of public cloud services among US Banks has surfaced as a way to innovate despite tight IT spending controls," Capachin said.
