Survival Strategy

Banks Are Ramping Up Digitalization Project Spending


As revenue growth slows and digital challengers grab market share, banks are ramping up digitalization project spending in a bid to secure the future.


img img img
Global banking average annual revenue growth rate, 2010-2015 Global revenue growth rate, 2016 Overall decrease in banks’ profit margins, 2014-2016

US$90 billion Amount banks in developed markets could lose in profit by 2020 due to low economic growth and increased digital disruption


With digitalization projects multiplying across the sector, banks must spend a lot to successfully transform.

US$20.2 billion Amount U.S. banks planned to spend on hardware, software, services and IT staff to develop and implement digital transformation initiatives in 2017

img of U.S. banks’ IT budgets were devoted to digital transformation initiatives in 2017.
img of financial service companies undertook digital transformation initiatives in 2017.

>40% of their budgets will be spent on digital transformation initiatives by 2020.



Yet targeted project benefits aren't guaranteed.

img of financial services IT leaders see a disparity between what executives expect from a digital initiative and what will be achieved.

img say there are currently not enough resources to achieve digital initiatives.

Sources: U.S. Banking Digital Transformation Spending Forecast, 2017-2020, IDC, 2017; Remaking the Bank for an Ecosystem World, McKinsey, 2017; A Brave New World for Global Banking: McKinsey Global Banking Annual Review 2016, McKinsey, 2016; 2017 Connectivity Benchmark Report, MuleSoft, 2017



Related Content

  • A Roadmap to PMO Excellence member content open

    By Farid, Sam In the world of the PMO, strategic thinking is not enough—agility and adaptability are crucial for overall survival and sustainable growth.

  • PM Network

    Power to Change member content open

    By Tayel, Jess Many organizations are undergoing (or will soon undergo) a business transformation program geared toward growth and creating a competitive advantage. When successful, these programs bring about a…

  • PM Network

    Beyond Mining member content open

    By Ali, Ambreen In the cradle of copper, Chile is digging deeper and wider to reimagine its economy. Government leaders don't want mining to define the country's opportunities—and with good reason. A global…

  • PM Network

    Serving Up Innovation member content open

    By Fister Gale, Sarah McDonald's has a craving for change. Decades after it turned the restaurant industry upside down by scaling fast-food convenience, the organization is on a mission to transform the customer…

  • PM Network

    Cashing Out member content open

    By Ali, Ambreen Cash is no longer king. In 2018, for the first time ever, the number of global ATMs decreased. Around the world, countries and retailers are launching monetary projects to become entirely digital.…