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."