Overall IT spend in financial services will exceed US$430 billion in 2014, said IDC Financial Insights in a recent web conference where it shared its top predictions for 2014.
The research company ran the web session to give organisations the opportunity to gain insight and perspective on long-term industry trends, as well as future prospects.
IDC Financial Insights’ top ten predictions for 2014 are:
- Overall IT spend in financial services will exceed US$430 billion in 2014 and will exceed US$0.5 trillion by 2020; consolidation and cooling emerging markets will make an impact.
- Institutions will leverage their investments of the past three years, improving compliance data management with new initiatives to extract additional business and operational value with analytics-based capabilities.
- All modernisation and improvement initiatives will include three components to be successful (technology, people and processes)
- The most successful financial institutions in 2014 will be those that can deliver an enhanced omni-channel experience to their customers and prospects, using new enabling technologies and supported by appropriate business processes.
- Core transformation projects will create opportunities for banks to out-innovate their peers, giving innovators years of technology advantage over core banking laggards.
- Consumers will become the disruptors in financial services by minimising their interactions with their primary institution and increasing the use of a variety of purpose-built apps that provide immediate and focused value.
- Lured by their aggressive growth in premiums, insurers will continue to pay close attention to the emerging market nations in developing Asia/Pacific and Latin America.
- The battle for dominance on the third platform will begin as firms move from ad hoc, repeatable initiatives to managed initiatives and new application mashups that target value creation in customer acquisition, market intelligence, and operations.
- Investment in risk management information technologies, services, and skills will exceed US$85 Billion in 2014 as firms industrialise credit and market risk system, operational risk disciplines get renewed support, and management learns to sell risk.
- Mobile and ‘alternative’ payment adoption will remain muted in 2014 as a wide array of providers try to find a value proposition that resonates for both merchants and consumers.
“As the IT organisation continues to struggle with when and where to invest in today’s technology, financial institutions need to balance investing in innovation and providing value for the customer, with placating the regulators,” said Scott Lundstrom, group vice president and general manager, IDC Financial Insights.
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