The level of spending on IT by US and Canadian banks is set to increase by 4.5 per cent in the next 12 months, according to a new report published by Celent.
Predictions also indicate that this investment in technology will continue into 2015, with some estimating a further increase that year.
Celent's IT Spending in Banking: A North American Perspective revealed spending on IT within the US and Canadian banking industries will hit $62.2 billion in 2014, a rise on 2013's figures, which also saw an increase from 2012.
Jacob Jegher, research director with Celent's banking group and the author of the report, said the figures, which indicate that investment spending is skyrocketing and that maintenance allocations are on the decline, are good news.
“It’s still quite challenging to get projects funded, however. Projects are encouraged but highly scrutinised, and they come with the requirement of a fast return on investment.”
By Gary Cooper