Budgeting, Planning & Forecasting

Budgeting, Planning & Forecasting

August 24, 2012

Ovum Predicts Positive Trends in Wealth Management Institution Investment in IT

According to Ovum (News - Alert), IT spending will reach figures of $36 billion within the global wealth management sector by 2016. Investments will primarily fall into digital channels. The Asia-Pacific region will be faring rather well between 2011 and 2016, increasing its spending on IT resources by a compound annual growth rate valuing at 8.5 percent. China, in particular, will contribute $1.7 billion and Japan will also provide another large chunk of $1.33 billion. These predictions come from global analysts at Ovum, a provider of analysis of the tech industry that helps businesses make better decisions.

Ovum's senior analyst of financial services technology, Jaroslaw Knapik, said, "Increasing profitability is a priority for all financial institutions. As the use of digital channels increases, banks will strengthen their focus on mobile channels and self-service functionality in an effort to connect and empower their customers."

Because of higher IT spending by wealth management institutions, customers will have more access to digitized financial management platforms that allow them to complete transactions more quickly and with less hassle. Smartphone and tablet platforms will likely receive larger amounts of investments from firms outside the financial spectrum. Mobile platform technology will also receive this kind of treatment as it advances further. 4G LTE (News - Alert) is a very stellar example of this.

Ovum also predicts that Internet and presence technologies will receive a push up from the Asia-Pacific region's banking and financial planning sectors, with investments reaching around $150 million. Retail brokerage is predicted to invest $135 million in such technologies, and retail asset management establishments will invest $73 million.

"Customer attitude toward banks has changed greatly as a result of the financial crisis," said Knapik. "Increasingly, digital channels are being developed to improve customer loyalty and cross-selling opportunities but also to lower servicing costs. While the economy is recovering, organizations should be focusing on the opportunity to increase revenue and improve trust among customers. This, coupled with the increased investment in personal finance management tools, will enable more self-management and closer monitoring of financial assets, helping to increase overall knowledge of finance management."

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2012, taking place Oct. 2-5, in Austin, TX.  Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.

Edited by Brooke Neuman

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