Global spending on retail banking technology is set to increase 24 per cent during the next five years hitting $US132 billion, according to an analyst firm.
Asia-Pacific region is set to experience the highest growth of 49 per cent to be worth $US28.1 billion by 2015, analyst firm, Ovum, said. Japan leads the region in terms of market size with a forecast of $US9 billion followed China ($US7.8 billion) and India in third place, holding US$ 2.7 billion in 2015. Australia, on the other hand, holds fourth place and is forecast to grow from $US2.2 billion in 2010 to $US2.7 billion.
“An increase in spending on technology in branches is expected be one of the major driving forces behind this rise in the emerging markets”, Ovum senior analyst, Jaroslaw Knapik, said.
The overall increase in investment will be driven by the need to grow revenues and improve customers' trust, the analyst firm revealed. This will lead to accelerated investment in online and mobile banking, technology in branches (in emerging markets) and channel integration.
Ovum’s figures show that Asia-Pacific investment in technology to allow customers to access banking services via the internet will experience growth of 39 per cent from 2010 to 2015, to hit $US1.8 billion.
Knapik indicated there was a strong focus on online platforms and their extension onto mobile devices and tablets.
“Technologies that allows ‘smarter’ selling and servicing, such as customer analytics and channel integration are expected to remain hot spot areas in the near future,” Knapik said.
According to Knapik ever increasing regulatory requirements will also drive investment into technologies that reduce costs, such as data management, business intelligence and analytics.
Spending on various middle-office components, such as risk management, anti-fraud, compliance or performance management, based on these technologies, will experience growth of 51 per cent from 2010 to 2015, hitting $650 million in Emerging Asia-Pacific. It is expected to grow of 28 per cent during the same timeframe, hitting $US1.1 billion in newly industrialised and developed economies in Asia-Pacific.