Asia Pacific to lead retail bank tech spending

12.01.2011
The Asia Pacific will have the world's highest growth in spending on retail banking technology, which will hit US$28.1 billion for the region by 2015, according to research house Ovum.

Ovum's latest Retail Banking Technology Spending Model shows the Asia Pacific expenditure will grow by 49 per cent in the next five years.

The independent technology analyst believes the overall increase in investment will be driven by the need to grow revenues and improve customers' trust. This will lead to accelerated investment in online and mobile banking, technology in branches (in emerging markets) and channel integration.

"An increase in spending on technology in branches is expected be one of the major driving forces behind this rise in the emerging markets", said Ovum senior analyst Jaroslaw Knapik. The technology spending for branches will increase by 53 per cent in Emerging Asia-Pacific within the next five year timeframe and hit $1.9 billion, as new branches open in the less saturated markets".

The research house says that Japan leads the region in terms of market size with a forecast of US$9 billion, followed by China (US$7.8 billion) and India in third place, holding US$2.7 billion in 2015. China and India hold the position for fastest growth in the Asia Pacific region.