Canadian banks’ tech spending surpassed $13 billion in 2013
IDC Canada recently released its study on the state of ICT spending within Canadian financial institutions. The total ICT expenditures, including both internal and external costs, exceeded $13 billion in 2013 and approximately 7% of total...
December 23, 2013
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IDC Canada recently released its study on the state of ICT spending within Canadian financial institutions. The total ICT expenditures, including both internal and external costs, exceeded $13 billion in 2013 and approximately 7% of total worldwide spending by banking institutions according to IDC published forecasts. Of the total $13.2 billion in ICT expenses, 50.6% is for development and professional services, 40.1% is for computing services, and 9.3% is for communications.
The report assesses the future outlook of Canadian financial institutions, examining areas such as financial stability, operational efficiency, infrastructure investments, mobile banking, outsourcing and moving banking to the digital world.
Robert Smythe, an IDC analyst and author of the report, said that “Canadian bank ICT CIOs are under extreme pressure to reduce expenses while at the same time accommodate new services, acquisitions and inflation. Funds for initiatives that do not provide almost immediate benefits for business units within a bank are limited. This prevents most banking CIOs from making the strategic investments required for a bank to thrive in the new digital banking world.
“The low hanging fruit of network and data centre consolidation has been harvested. It will now require extreme ingenuity on the part of CIOs to achieve further cost reductions while supporting new product offerings and preparing to deliver immediate payment options across all product lines on a 24×7 basis. Clients will be demanding immediate gratification in their digital world and banks need to be able to meet these expectations without delay.”
Further information is available at www.idc.ca.