IT Spending in Financial Services: A Global Perspective

by Jacob Jegher, December 28, 2007

Abstract

New York, NY, USA December 28, 2007

Celent aggregates financial services IT spending trends across regions, across industry verticals, and around the world.

In a new report, , Celent analyzes IT spending trends across different industry verticals (banking, insurance, and securities and investments) and different regions (North America, Europe, and the Asia-Pacific region), in addition to an overview of Latin America and Africa. The prime focus of the report is to compare and contrast the direction of IT spending trends among financial services institutions.

Celent estimates that global information technology spending by financial services institutions will reach US$342.1 billion in 2007. This represents an increase of 5.9% over 2006. This figure is substantially lower than the 8.7% growth achieved in 2006. Although the next couple of years may be challenging, Celent expects global spending on IT products and services to grow to US$386.7 billion by 2009, representing a CAGR of 6.3% from 2007 to 2009.

"Growth rates have dropped across all regions, contributing to this lower total," says Jacob Jegher, senior analyst in Celent's banking group and co-author of the report. "US financial institutions have been hit particularly hard and challenges in this region are contributing to growth declines. The credit crunch and looming economic uncertainty have North American financial institutions tightening their belts. Ripples from the US subprime crisis are likely to have a dampening effect on other regions as well." This 62-page report contains 35 figures and 24 tables. A table of contents is available online. Members of Celent's research services can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.  

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

New York, NY, USA December 28, 2007

Executive Summary 03
Introduction 07
Definition of IT Spending 08
Banking 10
  Snapshot 10
  North America 11
  Europe 18
  Asia-Pacific 24
Insurance 30
  Snapshot 30
  North America 31
  Europe 35
  Asia-Pacific 40
Securities and Investments 46
  Snapshot 46
  North America 47
  Europe 51
  Asia-Pacific 55
The Rest of the World 60
Conclusions 61
IT Spending Reports 62

 

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