US Banking Tech Spend Forecast: What's driving IT spend growth in the US, how it will be impacted by COVID-19, and what the new normal could look like

Executive Summary

The coronavirus pandemic has rocked the global economy, and US banks' IT budgets have been directly impacted. The US is currently home to the most cases globally, and its economy shrank by 4.8% in Q1 2020 due to the crisis—this turmoil is directly affecting the US banking industry's digitization efforts.

Three Key Questions This Report Will Answer:

• What are the key factors that will impact US banks’ IT/tech spending in the short and long term?
• Which banks in the US will have the highest IT/tech spend forecast between 2020-2024?
• What are the factors unique to each US bank that will affect tech/IT spend at each individual institution?

WHAT’S IN THIS REPORT? In the first section of the report, Insider Intelligence examines the underlying growth drivers of the funds banks are expected to allocate to IT/tech expenses over the next five years. Due to the importance of COVID-19 as an overarching macroeconomic factor, we've broken the section into three subsections that mirror the virus's expected trajectory: Lockdown (early 2020–late 2021), Partial Reopening (late 2021–early 2022), and the New Normal (early 2022–2024 and beyond). In the second half of the report, we take a closer look at individual banks' IT/tech expenditure trends and the growth factors and inhibitors unique to each institution.