Financial services firms will be spending $440 billion in 2018 and nearly $500 billion in 2021 on information technology (IT), research firm IDC predicts.
Banking IT spend makes up more than half of the total financial services IT spend driven by Asia Pacific, Latin America, and the United States.
Third-party spending on hardware, software, and IT services will be 70 percent of the total IT spend, while the 30 percent is reserved for internal IT spend for institution-employed IT staff for internal development, maintenance, and integration.
Financial services risk IT spending will grow from $80 billion in 2018 to $94 billion in 2021, fueled by technology investment to support increased requirements for fraud, security, and compliance solutions. This represents almost 20 percent of total financial services IT spending.
