IT spending for the financial services in the U.S. is expected to grow 5% this year to around $91 billion, according to a new report by IDC.
IT spending in the sector reached $86 billion last year, but tech spending is continuing to grow as financial firms buy technology particularly to comply with new regulations, as well as to control operational expenses.
Specifically, banking IT spending is expected to grow 4.8% this year, while technology spending in the securities and investment services industry should grow 5.6%, according to the IDC report.
IDC suggests that capital markets firms will focus their spending on new software investments and enterprise application upgrades.
IDC analysts said they expect the U.S. economy to stabilize in the second half of 2013, which will lead to moderately strong IT spending growth.
Overall, total IT spending by enterprises across different industries is expected to grow at the highest rate in Arizona, North Dakota, Utah and Texas, with an expected 7% growth across all industries, IDC said.
The biggest growth – 8% - will be seen in the healthcare and professional services industries, the report noted.