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The retail banking it spending market size is forecast to increase by USD 14.64 billion at a CAGR of 4.6% between 2024 and 2029.
The retail banking it spending industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.
The it services segment is estimated to witness significant growth during the forecast period.
In the retail banking sector, IT spending continues to be a significant investment area, driven by factors such as interest rates, net interest, inflationary pressure, and customer experience. IT services, including application development and maintenance, system integration, IT consulting, software deployment and support, and hardware deployment and support, dominate IT spending. IT consulting services experienced a 10% year-over-year growth in 2023, surpassing the overall IT services spend growth of 8.8%. Key players, such as Accenture, Capgemini, Cognizant, EPAM, Grid Dynamics, and HCL Tech, expanded their artificial intelligence (AI) capabilities in Q2 2023, with many collaborating with Google Cloud to enhance their offerings.
Technological advancements, consumer preferences, economic developments, and revenue streams influence retail banking IT spending. IT workforce, cloud spending, production volume, and operational efficiency are essential components of retail banking IT spending. Digital transformation through technologies like artificial intelligence, data analytics, cloud native ecosystem, infrastructure as code, cloud migration, containerization technologies, threat detection, prevention technologies, data encryption, blockchain technology, and fraud protection are shaping the retail banking landscape. Customer relationship management, online transaction systems, mobile banking, and digital banking are crucial customer experience propositions. Consumer expectations for seamless digital experiences and enhanced security are driving the adoption of these technologies.
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The IT services segment was valued at USD 31.14 billion in 2019 and showed a gradual increase during the forecast period.
North America is estimated to contribute 43% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The retail banking sector in the US is experiencing significant growth, driving the market. The BFSI sector's dominance in the region contributes substantially to this market, with the US being the largest contributor. The shift towards digital banking, including online transaction systems, mobile banking, and digital banking, is increasing the demand for IT investments. Furthermore, the resumption of student loan payments in October 2023 has added to the focus on IT spending for student loan processing. Retail banks prioritize IT technology to enhance customer experience, service propositions, and operational efficiency. IT spending encompasses areas such as cloud spending, production volume, technological advancements, and IT workforce.
Key areas of focus include customer relationship management, fraud protection, identity management, threat detection, prevention technologies, data encryption, blockchain technology, and artificial intelligence for data analytics. These investments aim to meet consumer expectations, improve revenue streams, and maintain a competitive position in the market. External stimuli, such as economic developments and regulatory requirements, also influence retail banking IT spending.
Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The retail banking it spending market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the retail banking it spending market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, retail banking it spending market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
Accenture PLC - The company provides comprehensive banking solutions encompassing payments, core banking, credit, banking cloud, open banking, and sustainable banking services. This approach ensures enhanced search engine visibility and caters to a global clientele, aligning with our commitment to delivering innovative and forward-thinking financial solutions.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Retail banking IT spending continues to be a significant area of investment for financial institutions as they navigate the dynamic market landscape. The banking industry is characterized by various market dynamics, including inflationary pressure and economic developments, which influence IT spending patterns. IT technology plays a crucial role in retail banking, as institutions strive to enhance customer experience and remain competitive. Service propositions are increasingly focused on providing seamless digital experiences, with online transaction systems, mobile banking, and digital banking becoming the norm. The retail banking IT workforce is evolving to meet the demands of these technological advancements.
Cloud spending is a growing trend, with institutions moving towards cloud-native ecosystems and infrastructure as code to improve operational efficiency and reduce costs. Consumer preferences are driving the adoption of advanced technologies such as artificial intelligence (AI), data analytics, and blockchain technology. These technologies enable institutions to offer personalized services, improve fraud protection, and enhance identity management. Production volume and revenue streams are also impacted by technological advancements. Banks must invest in IT services to ensure customer support is available around the clock and to maintain online and mobile banking platforms. Competitive position is a key consideration for retail banks, as external stimuli continue to shape the market.
Operational efficiency is essential to remain competitive, and institutions are turning to IT spending to streamline processes and improve value proposition. Technological advancements are not without challenges, however. Threat detection and prevention technologies are necessary to protect against cyber threats and maintain customer trust. Data encryption and data privacy are also critical areas of focus. In , retail banking IT spending is a critical area of investment for financial institutions. Institutions must adapt to changing market dynamics, consumer preferences, and technological advancements to remain competitive and provide a superior customer experience. IT spending on cloud migration, containerization technologies, AI, data analytics, and cybersecurity measures will continue to be key areas of focus.
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Market Scope |
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Report Coverage |
Details |
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Page number |
225 |
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Base year |
2024 |
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Historic period |
2019-2023 |
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Forecast period |
2025-2029 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.6% |
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Market growth 2025-2029 |
USD 14.64 billion |
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Market structure |
Fragmented |
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YoY growth 2024-2025(%) |
4.4 |
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Key countries |
US, Canada, China, Germany, UK, Japan, France, India, Italy, and The Netherlands |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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1 Executive Summary
2 Technavio Analysis
3 Market Landscape
4 Market Sizing
5 Historic Market Size
6 Qualitative Analysis
7 Five Forces Analysis
8 Market Segmentation by Type
9 Market Segmentation by Application
10 Customer Landscape
11 Geographic Landscape
12 Drivers, Challenges, and Opportunity/Restraints
13 Competitive Landscape
14 Competitive Analysis
15 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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