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Bank spending on tech-BAU favors emerging tech cos

BAU = Business as Usual and that's the order of the day in most shops, along with cutting costs. As a result, most of the evolutionary and revolutionary services will come from outside - through licensing, partnership, and M&A.

Absent from this write-up on the Celent projections is cyber-security, which of course will get a disproportionate increase in spending growth for the next several years to come.

Only a small portion. Banks spend most of their IT dollars on keeping their legacy systems up and running. Celent estimates 75.4% of the nearly $200B in annual IT spend will go to maintenance. This includes spending to keep up with new regulations, which primarily add to costs rather than revenues, the research firm says.

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banking