Large North American financial institutions will spend $73.8 billion on IT improvements across software, hardware and professional services in 2014, according to a report released by Technology Business Research.
This reflects a roughly 2% increase from these bank's 2013 IT spending. The Hampton, N.H. market research firm polled 201 large banks.
More specifically, in the category of "run the bank" fixed IT expenses, these banks intend to spend $7 billion on professional services, $5.2 billion in infrastructure, $4.6 billion on business applications, $4.1 billion on databases and middleware, $3.8 billion on systems management, $3.3 billion on business intelligence and analytics, and $3.2 billion on productivity apps.
In the discretionary "fix the bank" category, these banks plan to spend $4.1 billion on professional services, $4 billion on infrastructure, $3 billion on business applications, $2.7 billion on databases and middleware, $2.5 billion on systems management, $2.4 billion on business intelligence and analytics, $2.1 billion on productivity apps, and $1.4 billion on industry apps.
These banks are committed to funding customer facing technology next year. They report an average 2014 budget of $1.5 million for mobile and online banking projects. Self-service and service desk solutions are also popular, with an average $881,000 budget. Customer and channel management budgets average $750,000.
