FRAMINGHAM, Mass. (1/4/16)--Worldwide, the financial services industry forked over roughly $114 billion this year to pay for mobility, cloud, and big data and analytics technology capabilities, according to a new report from IDC Financial Insights.
That total marks roughly one-fourth of all spending on financial services information technology (IT) needs, which rose to $455 billion in 2015.
The report also found that spending in these three areas will rise to 30% of IT budgets by 2019.
“The advance of the 3rd Platform and its four pillars--mobility, cloud, big data and analytics (BDA), and social business--has caused a fundamental shift in how financial services companies are consuming and budgeting for IT and applications,” said Karen Massey, senior research analyst, IDC Financial Insights. “Financial institutions are increasingly leveraging these four pillars to transform their businesses, with a keen focus on three of the pillars--mobility, cloud and BDA.”
IDC, based out of Framingham, Mass., also explains why it believes each pillar is important in the report.
Mobility, for example, is seen as an opportunity to increase sales, improve productivity, and deliver customer and employee satisfaction, according to IDC. In the report, the firm specifically addresses mobility as it relates to mobile devices, mobile software and mobile services.
As for cloud services, IDC says that financial institutions are embracing this technology to improve efficiency in business processes and also to improve customer acquisition and experience. The specific topics addressed in the report related to cloud services include software as a service, platform as a service, and infrastructure as a service.
Finally, the report covers big data and analytics, which IDC describes as instrumental in financial services in terms of accelerating innovation, driving optimization, improving compliance and engaging customers or members by leveraging data-driven decision making.
For big data, the report specifically covers big data infrastructure, such as servers, storage and networks; high-performance data analysis; and big data software.