Market Research Logo

Business Strategy: The Cost of Digital Transformation in U.S. Banking — The Critical Technology Investments in 2015 and Beyond

Business Strategy: The Cost of Digital Transformation in U.S. Banking — The Critical Technology Investments in 2015 and Beyond

This IDC Financial Insights report outlines how much money is being invested by U.S. banks in digital transformation. After using 80% of the IT budget to pay for mandatory improvements in compliance, risk, security, and just keeping the lights on, it doesn't leave a lot to invest in the bank's future. In this report, IDC Financial Insights quantifies reports heard from CIOs and line-of-business leaders and validates that about 24% of the total IT budget in United States-based banks and credit unions is being used to enable digital transformation. And this investment is happening from two opposite ends of the institution, with line-of-business executives buying consumer-facing solutions to improve customer engagement and the CIO and IT groups trying to transform the bank's infrastructure from the inside out.

"It's like two teams of diggers making their way through a mountain to build a tunnel. They're hoping they'll be aligned when they meet in the middle. It's a $16.6 billion bet," says Jerry Silva, Global Banking research director for IDC Financial Insights.

Please Note: Extended description available upon request.


IDC Financial Insights Opinion
In This Study
Situation Overview
The Approach
Future Outlook
Essential Guidance
Actions to Consider
Learn More
Related Research
Synopsis
Table: U.S. Banks' Total IT Spending and Digital Transformation Spending and Share, 2015–2019
Figure: U.S. Banks' Digital Transformation Spending by Technology, 2015–2019
Figure: U.S. Banks' IT Spending Growth on Digital Transformation by Technology, 2016–2019
Figure: U.S. Banks' Digital Transformation Spending by Category, 2015

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report