July 22, 2011 – Global spending on IT by the wealth management industry will top $32 billion by 2015, a growth rate of 6.5 percent over a five-year period, according to new findings from Ovum, the business and technology analyst group.
As the economy improves from the slump of recent years, Ovum finds financial markets are driven by slowly increasing numbers of investors, which is influencing more IT spending.
“The recession had a big impact on the wealth management industry, and it was one of the sectors that bore the brunt of the fall-out, resulting in growth in tech spend slowing considerably,” Ovum senior analyst Jaroslaw Knapik said in the news announcement.
IT’s internet services is expected to experience strong gains, with banking and financial planning sectors of the global wealth management industry to increase spending in this area by 7.6 percent from 2011 through 2015.
Websites and applications for customers and financial advisers to access information via mobile devices, such as smartphones and tablets, will drive some of this growth in Internet spending. Other Internet growth will include upgrading online services with financial management tools and integration with middle and back-office technology such as product origination, customer information, or investment and portfolio management systems.
The U.K. and Ireland region will see growth of 6.6 percent over a five-year period, to reach $2.3 billion in 2015. U.S. growth in wealth management IT will be 6 percent for the same period to reach just more than $13 billion.
According to Ovum, emerging markets in Eastern Europe and Asia-Pacific are set for “explosive” growth. Wealth management IT spend in Eastern Europe will grow by 17.8 percent from the beginning of 2011 to the end of 2015. More IT investment is expected as the wealth management industry takes off in the region, according to the research. The Asia-Pacific region is projected for growth of 12.8 percent for the same period.
For more on financial technology spending, read this article.
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