The retail banking IT market has been forecast to increase at a compound annual growth rate (CAGR) of 4.1% through to 2016, driven by the increasing need for customer satisfaction and the increasing need to comply with banking regulatory policies.
Retail banking is when a bank executes transactions directly with consumers, rather than corporations or other banks. Services offered include savings and transactional accounts, mortgages, personal loans, debit cards, and credit cards.
The term is generally used to distinguish these banking services from investment banking, commercial banking or wholesale banking. It may also be used to refer to a division of a bank dealing with retail customers and can also be termed as Personal Banking services.
According to a recent report, 'Global Retail Banking IT Market 2012-2016,' the use of mobiles for banking services has now become extremely common. Customers are readily shifting from PCs and laptops to mobiles to manage their finances and bank accounts. The availability of affordable mobile devices has made this possible.
Moreover, these devices are quite powerful and are efficient enough to perform the work of PCs and laptops. The technology makes it convenient for customers to get in touch with the bank avoiding visits to the branch. In 2012, several banks globally invested in IT initiatives to develop the online experience of their customers. Banks are also able to better manage customers at a lower cost through mobile banking.
More spending initiatives are expected to follow in the next couple of years till 2016. Banks will need to figure out the mix of digital channels that will help them gain maximum returns in the years to come.
One of the major challenges in the market is meeting the diverse needs of customers. Advancements in the technology and the adoption of these updated technologies by customers are forcing banks to quickly adopt best fit technology to remain in the competition.
Key players currently dominating the retail banking IT market include Dell Inc., Hewlett-Packard Co., IBM Corp., and Microsoft Corp.
For more information on the retail banking IT market, see the latest research: Retail Banking IT Market
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