According to a new IDC report (www.idc.com) worldwide risk information technologies and services (RITS) spending will reach US$78.6 billion in 2015 and is expected to reach $96.3 billion by 2018 at a compound annual growth rate (CAGR) of 6.97% during the 2013–2018 forecast period. Key highlights from the new report include:
° Total IT spending for the worldwide financial services market for 2015 is forecast to reach $458.4 billion for hardware, software, and internal and external IT services. By the end of the forecast period in 2018, this spending will reach $522.3 billion.
° The components of this total market devoted to risk management will account for an average of 17.1% of overall spending by CIOs, CTOs, risk and compliance officers, and line-of-business IT executives in 2015, growing to 18.4% of total spending by 2018. Both percentages are up slightly from the previous forecast.
° The Capital Markets sector spends more on risk technology when compared with total sector spending, with over 24.5% of total IT spending allocated to risk functions by 2018.
° Risk technology investments by institutions domiciled in the Asia/Pacific market will grow at a rate higher than the average, while investments by firms domiciled in the North American and European markets will grow at a slower rate.
° Investments in external risk services are growing at a quicker pace than the average, while spending on internal risk IT services is growing at a slower rate through the forecast period. The proliferation of external risk services will bring meaningful positive change to the ways in which IT is consumed and utilized.
According to Michael Versace, global research director, IDC Financial Insights:
“As institutions begin to see the connection between digital strategies and risk strategies, and new innovations from 3rd Platform vendors unfold, traditional Fintech vendors will be challenged to demonstrate value in digital strategies while at the same time discover white space opportunities. To meet this challenge, Fintech vendors will require deeper insights into enterprise strategies, brand and product perceptions, unmet needs, and important buying triggers.”