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Bank IT spending to reach $100 billion in 2018

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Harmeet
New Update

NEW DELHI, INDIA: Bank IT spending within the financial services sector is set to hit the $100 billion mark by 2018, according to the latest study conducted by Ovum.

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According to research, there is a consensus across capital markets, corporate banking and asset management that technology spending will increase in the coming years, with much of the growth in investment down to IT driving cost-savings elsewhere within the finance industry.

The firm also revealed that 2014 is set to be a difficult year for capital markets, following on from a tough 2013. However, despite the concerns during 2013, IT spend increased by 3.7 percent, with analysts predicting a 4.8 percent growth in 2014.

Daniel Mayo, practice leader, financial services technology, Ovum, said that banks are currently looking to renew their platforms and, as a result, are investing in technology and IT for the future of their business.

Financial institutions are increasingly looking to move towards a central banking function, which requires the consolidation and improvement of systems in a bid to make them much more efficient. On the back of this, Ovum believes IT spending in this area will record an annual CAGR of 6.4 percent between 2014 and 2018.