Financial institutions will increase information technology spending 2.9% in 2010, after cutting budgets by 2.5% in 2009, according to research and consulting firm Celent.
The greatest growth in financial IT spending this year will be in Asia-Pacific, the firm predicts, with expenditures rising 5.1% and a cumulative average growth rate of 6.2% from 2010 to 2012. In 2012, Asian firms will spend nearly $102 billion on IT spending.
In North America, IT spending will reach $128.8 billion in 2012, for a CAGR of 4.4% between 2010 and 2012. IT spending in Europe will climb to $141 billion in 2012, a CAGR of 4.7% from 2010 to 2012.
In terms of industry verticals, securities and investment firms are expected to increase their spending on IT at a faster rate, 3.4%, than the other industry verticals. In North America, the CAGR between 2010 and 2012 will be 6.2%.
"After a difficult 2009, growth rates are starting to climb across all regions," says Jacob Jegher, senior analyst with Celent's banking group and co-author of the report. "2010 has the potential to be the start of a turnaround, but there is still plenty of uncertainty in the industry and we are not completely out of the woods."