U.S. Banking Update: Opportunities and Challenges for IT in 2018
Big data and analytics (BDA) is at the top of the priority list for U.S. banks. 28% of banks surveyed by IDC reported that their primary purpose for investment in this area was to understand and target customers better, the top reason for investment.
While BDA tops the priority list, other technologies are close behind. Cloud computing, loT, and just traditional IT are listed as high priorities as well.
Over half of the banks surveyed (53%) indicate increased IT spending as a result of new projects. And 28.5% of banks report that aver half of their new IT initiatives are driven by digital transformation.
The 3 recommended actions are:
- Institutions can use this data to compare their own progress. The information reported in this document can be used as peer comparison to help guide “data strategy”.
- Big data and analytics initiatives should be considered a high priority. Given the importance placed on them by the banks, BDA initiatives are perceived as competitively differentiating technologies.
- Prioritization of competing IT initiatives will require enterprise wide strategies. As the survey data shows, there are multiple technology initiatives vying for the same dollars at the bank. Business leaders and IT executives must come together to determine the priorities and timing for funding these important initiatives.