Technology and services spending across banking and securities firms in New Zealand is set to tip $1.9 billion this year, including internal IT operations, according to analyst firm Gartner.
The market is expected to reach $2 billion in 2021.
From a global perspective, banking and securities IT spending is expected to decline 4.7 per cent to US$514 billion this year, but should rebound next year with a 6.6 per cent growth rate.
Spending on mobile and PC devices will see the biggest decline at 12.1 per cent, followed by data centre systems.
“With a better understanding of the impact of COVID-19, banks and securities firms are now accelerating automation initiatives, such as customer-facing chatbots, robotic process automation (RPA) and end-to-end account origination solutions,” Gartner senior director analyst Jeff Casey said.
“They’re also focused on redesigning organisation structures and workflows and reprioritising modernisation initiatives.”
Following strong growth of five per cent in 2019, the impact of COVID-19 will see spending on IT services decline in 2020 with contract size, terms and deal type severely impacted, as large transformation projects are curtailed or canceled, Gartner said.
“IT services spending will begin to rebound as banks accelerate reprioritised modernisation initiatives in 2021,” Casey added.