Banking on the cloud

Banks across the globe spent nearly USD 59 billion on software in 2022, representing a 6.3% compound annual growth rate since 2016. Looking forward, Bank of America expects the total addressable market for banking sector software to expand at a 5.5% CAGR. Notably, spending growth on outsourced and third-party software is expected to outpace internal development. Under pressure from digitally native challenger banks and other financial technology services, incumbent banks need to focus on their core operations while modernizing their technology.  With client deposits securely in the vault, value added services and insights can be delivered via the cloud.

Source: Bank of America, 2023