Infotech Lead America: Wealth management industry will spend $35 billion in IT by 2016.
Ovum said there will be heavy investment in digital channels.
APAC’s high net worth banking and financial planning businesses will spend $150 million in Internet and presence technologies.
Retail brokerage and retail asset management organizations will increase their investment to $135 million and $73 million, respectively.
Between 2011 and 2016 the Asia-Pacific (APAC) region will increase its IT spend by a compound annual growth rate (CAGR) of 8.5 percent.
China’s investment will be reaching $1.78 billion.
Wealth management industry in Japan will be spending $1.33 billion on IT.
“Increasing profitability is a priority for all financial institutions. As the use of digital channels increases, banks will strengthen their focus on mobile channels and self-service functionality in an effort to connect and empower their customers,” said Jaroslaw Knapik, senior analyst, financial services technology, Ovum.
The growth in IT spending by wealth management institutions will give rise to more personal financial management tools offered to customers. Increased support for smartphones and tablets will be driven largely by investment from non-financial institutions, as well as the recent advances made in mobile finance platform technology.
Customer attitude toward banks has changed greatly as a result of the financial crisis.
Increasingly, digital channels are being developed to improve customer loyalty and cross-selling opportunities but also to lower servicing costs. While the economy is recovering, organizations should be focusing on the opportunity to increase revenue and improve trust among customers.
This, coupled with the increased investment in personal finance management tools, will enable more self-management and closer monitoring of financial assets, helping to increase overall knowledge of finance management.