Global Retail Banking IT Spending Market Size Study, by Type (IT Services, IT Hardware, IT Software) and Regional Forecasts 2022-2032

Global Retail Banking IT Spending Market is valued approximately at USD 61.57 billion in 2023 and is anticipated to grow with a healthy growth rate of more than 4.5% over the forecast period 2024-2032. Retail Banking IT Spending refers to the financial resources allocated by banks to develop, maintain, and enhance their technology infrastructure and systems specifically for serving individual customers. This includes investments in digital banking platforms, mobile apps, cybersecurity measures, data analytics, and other technologies aimed at improving customer experience, operational efficiency, and risk management within the retail banking segment. In today's digital age, the banking industry is witnessing a significant shift towards enhancing customer satisfaction, increasing operational efficiency, and embracing autonomous banking. Banks are leveraging advanced technologies such as Artificial Intelligence (AI) and Machine Learning (ML) to provide personalized services, streamline processes, and offer round-the-clock support. AI-driven chatbots and virtual assistants are becoming the new norm, enabling customers to conduct transactions and get answers to queries instantly. Moreover, the rise of autonomous banking, or Banking-as-a-Service (BaaS), is enabling third-party providers to offer banking functionalities as an add-on to their services, thereby increasing competition and driving innovation. In this evolving landscape, banks must adapt to these trends to stay competitive and meet the growing demands of their customers.

The growing need for greater customer satisfaction is notably driving market growth. In the retail banking sector, the growing customer base and expanding geographical reach necessitate advanced solutions for managing customer relationships and enhancing productivity. Modern banking software plays a pivotal role in addressing these requirements. By implementing cutting-edge technologies such as online transaction systems, mobile banking, and digital banking, enterprises can cater to evolving consumer expectations. These solutions enable customers to access their accounts from anywhere, at any time, and from any device.

Moreover, the integration of artificial intelligence (AI), data analytics, and cloud-native ecosystems, including Infrastructure as Code and containerization technologies, empowers banks to streamline operations and improve customer service. Additionally, security measures like threat detection, prevention technologies, data encryption, blockchain technology, and fraud protection, as well as identity management, are crucial components of banking software. These features ensure the protection of sensitive customer information and maintain trust in the digital banking landscape. Thus, such factors are driving the growth of the market during the forecast period.

The incorporation of analytics into third-party banking software is the key trend in the market. In today's digital age, retail banking customers are increasingly relying on mobile devices and online transaction systems for banking services. This shift towards digital banking has resulted in an influx of customer data for financial institutions. To maximize the potential of this data, banks are investing in advanced banking software equipped with data analytics capabilities. These solutions enable institutions to gain valuable insights into customer behavior, preferences, and trends, leading to improved decision-making and enhanced customer relationship management.

Moreover, the adoption of cutting-edge technologies like artificial intelligence (AI), machine learning, and data encryption is transforming the banking industry. Cloud-native ecosystems, infrastructure as code, and containerization technologies are facilitating cloud migration, ensuring business continuity and scalability. Furthermore, threat detection and prevention technologies, along with identity management and blockchain, are crucial for securing digital transactions and protecting against fraud. By embracing these digital advancements, financial institutions can optimize their operations, reduce risk, and meet evolving consumer expectations. Thus, such trends will shape the growth of the market during the forecast period.

Issues related to data privacy and security are the major challenge that affects the growth of the market. In the realm of retail banking, IT spending is being significantly influenced by digital transformation. Customer expectations for superior customer support and productivity are driving banks to adopt cutting-edge technologies such as online transaction systems, mobile banking, and digital banking. However, data privacy and security remain major concerns in this context. Traditional banking systems are based on a complex infrastructure of open-source codes, making them susceptible to risks.

Furthermore, cloud infrastructure, which is increasingly being adopted due to its ease of use and scalability, is particularly vulnerable to glitches in source codes and potential unauthorized access. Hackers can exploit these vulnerabilities to gain access to sensitive consumer data, leading to potential fraud and identity theft. To mitigate these risks, banks are investing in advanced technologies such as artificial intelligence, data analytics, and blockchain technology for threat detection, prevention, data encryption, and fraud protection. Infrastructure as Code and containerization technologies are also being adopted for a more secure and efficient IT ecosystem. Hence, the above factors will impede the growth of the market during the forecast period.

The key regions considered for the global Retail Banking IT Spending Market study include Asia Pacific, North America, Europe, Latin America, and Rest of the World. North America is expected to hold the largest share of the market in 2023. The Asia Pacific region is anticipated to experience the most rapid growth during the forecast period. The significant expansion of the market in the Asia Pacific can be attributed to the rise in digital banking adoption, dynamic growth in banking infrastructure, and increasing awareness of advanced banking technologies. These factors collectively contribute to an increased demand for retail banking IT solutions in the APAC region.

Major market players included in this report are:

• CGI Inc.
• Cisco Systems Inc.
• Cognizant Technology Solutions Corp.
• Dell Technologies Inc.
• Fidelity National Information Services Inc.
• Fujitsu Ltd.
• Genpact Ltd.
• HCL Technologies Ltd.
• Hitachi Ltd.
• HP Inc.
• Infosys Ltd.
• Intel Corp.
• Accenture Plc
• Atos SE
• Capgemini Service SAS

The detailed segments and sub-segment of the market are explained below:

By Type:

• IT Services
• IT Hardware
• IT Software

By Region

• North America
• U.S.
• Canada
• Europe
• UK
• Germany
• France
• Spain
• Italy
• ROE
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• RoAPAC
• Latin America
• Brazil
• Mexico
• RoLA
• Middle East & Africa
• Saudi Arabia
• South Africa
• RoMEA

Years considered for the study are as follows:

• Historical year - 2022
• Base year - 2023
• Forecast period - 2024 to 2032

Key Takeaways:

• Market Estimates & Forecast for 10 years from 2022 to 2032.
• Annualized revenues and regional level analysis for each market segment.
• Detailed analysis of geographical landscape with Country level analysis of major regions.
• Competitive landscape with information on major players in the market.
• Analysis of key business strategies and recommendations on future market approach.
• Analysis of competitive structure of the market.
• Demand side and supply side analysis of the market.