Mobile consumers will disrupt the financial services market, predicts IDC

Mobile consumers will be the "disruptors" in the financial services market by increasing their use of purpose-built apps that provide focused value, while minimizing their interactions with their primary institution, predicts market research firm IDC.

At the same time, mobile payment adoption will be slow next year because providers are having trouble finding a "value proposition" that is attractive to both consumers and merchants.

In addition, financial firms will battle to dominate the third platform--cloud computing, big data, mobile and social networking--as they move from ad hoc to managed initiatives and new app mashups focused on customer acquisition, market intelligence and operations.

Overall, IT spending in financial services is forecast by IDC to exceed $430 billion in 2014 and to pass $500 billion by 2020.

Of the 2014 IT spending, $85 billion will go toward investment in risk management as firms "industrialize credit and market risks system, operational risk disciplines get renewed support and management learns to sell risk," says IDC.

"As the IT organization continues to struggle with when and where to invest in today's technology, financial institutions need to balance investing in innovation and providing value for the customer, with placating the regulators," explains Scott Lundstrom, group vice president and general manager of IDC Financial Insights.

For more:
- see IDC's release

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