Wonder
Log in
Research Outline
Prepared for Frederik | Delivered April 5, 2020
Global Investment Banks - IT Spend
Review your project details
Goals
To determine the annual spend on technology and IT services by global investment banks (GIBs).
View less
Early Findings
Global investment banks (GIBs) spend
$72 billion
annually on technology and IT services to protect their revenue from the threat posed by fintech companies, as well as stay competitive with their peers, according to a recent report by Moody's.
According to the report, US-based GIBs
spend more
on digital infrastructure than their European counterparts. On average, GIBs invested about
18.3%
of their total operating expenses on technology between 2017 and 2019.
Globally, banks spent a total of
$387 billion
on technology and IT services in 2019. Bank spending on technology is expected to expand at a CAGR of
7.8%
between 2019 and 2022, fostered by increased software investments.
In comparison, banks in the United States spent a total of
$67 billion
on technology and IT services in 2019.
The global banking industry generated a total of
$1.3 trillion
in after-tax profit in 2018.
The world's top three investment banks include J.P. Morgan, with
$7.2 billion
in revenue; Goldman Sacks, with
$6.8 billion
in revenue; and Morgan Stanley, with
$6.2 billion
in revenue.
View less