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Retail banking technology to reach $132 Billion in 5 years
By siliconindia
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Thursday, 13 January 2011, 15:21 IST
Bangalore: Global spending on retail banking technology will increase by 24 percent over the next five years to hit $132 billion, according to the new figures by the analytics firm Ovum.
The report states that the increase in investment will be driven by the need to grow revenues and improve customers' trust. This will lead to accelerated investment in online and mobile banking, technology in branches and channel integration.
The figures reveal that global investment in technology to allow customers to access banking services via the internet will experience growth of 33 percent from 2010 to 2015, to hit $9.7 billion.
Senior Analyst Jaroslaw Knapik said, "There is a strong focus on online platforms and their extension onto mobile devices and tablets, given their ability to service clients at a lower cost. In addition, technologies that allows 'smarter' selling and servicing, such as customer analytics and channel integration are expected to remain hot spot areas in the near future."
The ever increasing regulatory requirements will also drive investment into technologies that reduce costs, such as data management, business intelligence and analytics, Knapik opined. Global spending on various middle-office components, such as risk management, anti-fraud, compliance or performance management, based on these technologies, will experience growth of 30 percent from 2010 to 2015, hitting $7.2 billion.
The emerging markets will also demonstrate strong growth with Emerging Asia Pacific growing by 49 per cent from 2010 to 2015 to hit $12.7 billion. Middle East and Africa will grow by 36 percent during the same timeframe to hit $5.5 billion.
An increase in spending on technology in branches is expected be one of the major driving forces behind this rise in the emerging markets. The area will experience global growth of 28 percent over the next five years to hit $18.6 billion.
While Europe is the second biggest market in terms of overall spend and will reach $43 billion by 2015, five-year growth will only hit 19 percent, the lowest of all the regions.
