Authored By: Sarah
11 Jul 2024

 Retail Banking It Spending Market Size to grow by USD 13576.6 million between 2024-2028

According to a research report “ Retail Banking It Spending Market” by Type (IT services, IT hardware, IT software) Geography (North America, Europe, APAC, Middle East and Africa, South America)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 13576.6 million, at a CAGR of  4.5% during the forecast period. In the dynamic retail banking sector, the customer base is expanding rapidly as individuals and businesses increasingly rely on banks for financial management and investment decisions. To effectively serve this growing demographic, financial institutions are broadening their geographic reach, entering new markets to increase customer numbers. To efficiently manage this enlarged customer base and deliver superior service, it is essential for banks to adopt advanced banking software solutions. These systems enable customers to access their accounts from any connected branch globally, offering convenience and flexibility in account management.

Browse market data tables, figures, and in-depth TOC on “Retail Banking It Spending Market” by Type (IT services, IT hardware, IT software) Geography (North America, Europe, APAC, Middle East and Africa, South America) Global Forecast to 2028. Download Free Sample

 

By Type, the IT services segment is projected to dominate the market size in 2024

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By Geography, North America  segment is expected to hold the largest market size for the year 2024

In the realm of Retail Banking IT Spending, key vendors such as Microsoft offer a range of services to optimize business processes. These services encompass application development and maintenance, system integration, IT consulting, software deployment and support, and hardware deployment and support. IT consulting, in particular, plays a pivotal role in enabling business-IT alignment. Notably, Microsoft's recent restructuring of its services organization in July 2021 underscores this trend. The new consulting services organization concentrates on advanced technical domains, including Azure Cloud and AI, encompassing secure infrastructure, data, and AI applications.

North America is forecasted to hold the largest market size by region in 2024

In the dynamic retail banking sector, technology spending continues to be a significant investment area. Banks allocate substantial resources towards digital transformation, including mobile and online banking platforms, cybersecurity, and data analytics. These investments aim to enhance customer experience, streamline operations, and ensure regulatory compliance. Additionally, fintech collaborations and artificial intelligence integration are becoming essential components of retail banking IT strategies.

The Retail Banking It Spending Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • Accenture Plc
  • Atos SE
  • Capgemini Service SAS
  • CGI Inc.
  • Cisco Systems Inc.
  • Cognizant Technology Solutions Corp.
  • Dell Technologies Inc.
  • Fidelity National Information Services Inc.
  • Fujitsu Ltd.
  • Genpact Ltd.
  • HCL Technologies Ltd.
  • Hitachi Ltd.
  • HP Inc.
  • Infosys Ltd.
  • Intel Corp.
  • International Business Machines Corp.
  • Microsoft Corp.
  • NetApp Inc.
  • Oracle Corp.
  • SAP SE
  • Wipro Ltd.
  • WNS Holdings Ltd.
.

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Research Analysis Overview

Retail banking is undergoing a digital transformation driven by IT spending on hardware, networks, and IT services. According to a report by Celent, retail banks are expected to increase their IT spending by 3.6% in 2023, focusing on service propositions that enhance customer experience. This investment in technology is crucial for operational efficiency, adaptation to external stimuli, and innovation in the face of increasing competition. Hardware and network upgrades are essential for resilience and sustainability, enabling banks to offer reliable digital services and protect against cyber threats. IT spending on IT services, including cloud computing and artificial intelligence, is driving innovation and enabling new revenue streams. However, retail banks face risks in their IT spending, including inflationary pressure from hardware and software costs, net interest margin compression due to low-interest rates, and regulatory compliance. To maintain a competitive position and customer satisfaction, retail banks must balance their IT spending with their revenue streams and adapt to the ever-changing retail banking landscape.

Market Research Overview

Retail banking is undergoing a digital transformation, driven by external stimuli such as consumer preferences, regulatory changes, economic developments, and technological advancements. Banks are investing heavily in IT technology to meet the demands of digital-savvy customers and stay competitive. According to Celent, retail banking IT spending is projected to reach USD158 billion by 2024. Identity management and fraud protection are top priorities, with banks implementing advanced prevention technologies like blockchain technology, data encryption, and threat detection. Containerization technologies and cloud migration are also key areas of investment, enabling operational efficiency, productivity, and agility in the cloud native ecosystem. Data analytics and artificial intelligence are transforming customer experience, enabling personalized service propositions and predictive fraud detection. However, these technologies also bring risks, such as data privacy concerns and cyber threats. Retail banks are also adapting to inflationary pressure and net interest rate changes by diversifying revenue streams and focusing on innovation, resilience, and sustainability. IT services, software, hardware, networks, and IT workforce are all essential components of retail banking IT spending. Cloud spending is a significant area of investment, with infrastructure as code and service-oriented architectures enabling agility and scalability. Banks are also investing in mobile banking and online transaction systems to meet customer expectations and improve customer relationship management. Overall, retail banking IT spending is a critical component of the value proposition for retail banks, enabling operational efficiency, customer satisfaction, and revenue growth in a rapidly changing market.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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