Research firm, Ovum, expects Asia-Pacific IT spending by the wealth management industry to experience a growth rate of 8 per cent over a five-year period starting from the beginning of 2011.
In its new forecast, Wealth management Technology Spending Through 2015: Business Function Segmentation, Ovum foresees spending topping $4.6 billion by the end of 2015, with Australia contributing of around $57 million.
Australia is likely to spend $42 million in 2011.
Ovum foresees the highest level of growth will take place in the Internet services channel.
“Wealth managers face rising client expectations as and now need to create websites and applications that allow clients and financial advisors access to company websites via mobile devices such as smart phones and tablets,” Ovum Asia-Pacific IT research director, Dr. Steve Hodgkinson, said.
“Online services also need to be upgraded with personal financial management tools and closer integration of the online channel with middle and back office technology such as product origination, customer information or investment and portfolio management systems.”
Growth in IT spending by the wealth management industry in Australia, China, India and Korea will be above the global figure of 6.5 per cent, with Australia’s Compound Annual Growth Rate (CAGR) forecasted at 8 per cent, and China and India expected to be the major drivers of technology spending with CAGR of 14 per cent and 12.5 per cent, respectively.
While large IT spending in the developed world will continue, the emerging Asia-Pacific market has a potential for substantial growth in the next five years.
“As investor confidence grows so to will their investment activity and the demands that they place on wealth managers,” Hodgkinson, said.
Ovum recently found that the Global FTTx market will continue to be ruled by China and FTTx will overtake DSL in Asia-Pacific.