Retail banks' IT spending to rocket over five years

Retail banks in all regions are increasing their IT spending by an average of 24% over the next five years but European banks will increase spending the least.

According to the latest research from Ovum, global IT spending at retail banks will reach $132bn by 2015.

Banks will invest heavily in technology that will improve customer experiences. This will mean mobile and online banking services will see investment, branches will be updated with the latest technology in emerging markets and different banking channels will be integrated.

European banks will only increase spending by 19% compared to the global average of 25%. US banks will also increase spending by a below global average 23%.

Ovum said technology to allow customers access banking services via the internet will experience growth of 33% from 2010 to 2015, reaching to hit $9.7b in 2015.

"There is a strong focus on online platforms and their extension onto mobile devices and tablets, given their ability to service clients at a lower cost. In addition, technologies that allow 'smarter' selling and servicing, such as customer analytics and channel integration are expected to remain hot spot areas in the near future," said senior analyst Jaroslaw Knapik.