Western European small banks to increase IT spending by 4.8% a year

IT spending in Western European small banks is expected to increase over the next 5 years at a compound annual growth rate (CAGR) of 4.8%, versus 4.2% in medium-sized banks and 5.0% in big banks. Although small and medium-sized banks account for just 39% of total IT spending in banking, they remain an attractive business segment for some specific products and services. Small and medium-sized banks are potentially very good targets for IT companies. Indeed, several medium-sized banks are centers of excellence and are building their future ability to make money in such a challenging market on their IT superiority, IDC says.