Retail Banks to Increase IT Spending by 3.4% in 2013: Study

Retail banks around the world are expected to increase their IT spending in 2013 by 3.4 percent and invest $118.6 billion in the category, finds new research published by Ovum, a global industry analyst firm.

North American banks, meanwhile, are expected to spend 3.3% more on IT in 2013. Increased revenues and greater customer satisfaction are the most important objectives impacting their IT investment strategy, says Ovum.

The research, which polled 250 senior IT and business executives, was conducted in October and November 2012.

Among the digital channels, mobile banking is expected to take the top IT investment in 2013, while credit risk management and data privacy will become key regulatory compliance drivers of IT spending in the coming year, according to the research.

The study echoes the similar overall findings of a recent American Banker Research study, which expects capital spending to increase among banks in 2013, and IT to be the number-one recipient of the new cash. Similar to Ovum's research, the American Banker study found that the top investment dollars are going to mobile banking initiatives. Indeed, 57% of the 300 bank executives polled in December said they will spend on mobile banking initiatives, according to American Banker Research.