IDC, IT market research agency, has shared 10 trends and tips to financial services industry for the next year.
The market analyst firm says overall IT spending in financial services will exceed $430 billion in 2014 and will surpass $500 billion by 2020. Industry consolidation and cooler emerging markets will impact long-term growth.
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 modernization and improvement initiatives will include three components (technology, people, and processes) to be successful. The industry has focused too long on technology in a vacuum, and in 2014, the IT organization will become more important.
The most successful financial institutions in 2014 will be those that can deliver an enhanced omnichannel 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 minimizing 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 3rd 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 $85 billion in 2014 as firms industrialize credit and market risk systems, 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 tries to find a value proposition that resonates for both merchants and consumers.