The research has stated that IT spending by the global wealth management industry will be reaching almost US$35bn by 2016, and that the spending will include heavy investment in digital channels.
According to the forecasts, between 2011 and 2016 UK and Ireland’s spending has been predicted to grow at a compound annual growth rate (CAGR) of 7.3%, while Eastern Europe is to see the strongest rise of 17.7% (CAGR).
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Jaroslaw Knapik, senior analyst, financial services technology, Ovum remarked "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."
The growth in IT spending by wealth management institutions will give rise to more personal financial management tools offered to customers.
And increased support for smart phones and tablets will be driven largely by investment from non-financial institutions, as well as the recent advances made in mobile finance platform technology, the research stated.
Further, Ovum forecasts that investment in Internet and presence technologies by UK and Ireland’s HNW banking and financial planning businesses will reach US$80.1, while retail brokerage and retail asset management organizations will increase their investment to US$63.8m and US$42.8m, respectively.
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