Product Code: IT003-000582
With IT intensity in the financial services industry among the highest when compared to other sectors, wealth management IT executives need to balance a range of priorities in directing their IT spending. Understanding industry trends and priorities helps wealth managers to benchmark themselves against their peers.
- The increased strength of the client is driving investments in channels and product development, predominantly in online and mobile delivery, making this the area with the highest spending growth across geographies. Wealth managers also need to focus on improving client trust, which translates into increasing sales and improving servicing effectiveness.
- Results from the recent Ovum's Enterprise Insights study of nearly 200 wealth management institutions across the Americas, Europe, and Asia-Pacific reveal that reducing operating costs and supporting revenue growth are the most important objectives impacting IT investment strategy in 2013.
- According to Ovum's technology market sizing and forecasts, IT spending growth in the global retail banking industry is expected to accelerate in 2014 and grow at a rate of 4.0%, up from 3.1% in 2013.
- Provides executive perspectives on key drivers and priorities in IT strategy in 2013.
- Identifies IT spend growth areas in wealth management to 2017.
- Which countries and markets will see the strongest IT spend growth in the short and medium term?
- Where are my peers allocating spend across business functions?
Table of Contents
- Ovum view
- Key messages
- A STRONGER CUSTOMER DRIVES IT BUDGET GROWTH
- Wealth managers should rebalance strategy toward revenue growth rather
than just cost reduction
- The majority of IT budgets are set to grow by 6% or more
- FOCUS ON REVENUE GROWTH DRIVES IT PROJECTS
- Digital and physical channels and product development top CIOs'
- The focus on revenue growth is driving front-office investments among
- Recommendations for enterprises
- Invest in distribution channels to drive revenues
- Focus on operational cost reduction in back-office operations
- Recommendation for vendors
- Deliver a credible channel solution, with digital delivery at the
- Further reading
- Ovum Consulting
- Figure 1: Wealth managers' IT investment drivers
- Figure 2: Wealth managers' IT budget changes, 2013 and 2014
- Figure 3: Global technology spending for wealth management
- Figure 4: Technology spending by subregion, 2013-2017
- Figure 5: Wealth managers' top-three IT projects
- Figure 6: Retail brokerage technology spending by business function,