Canada Banking Tech Spend Forecast: What's driving IT spend growth in Canada, how it will be impacted by COVID-19, and what the new normal could look like

Executive Summary

With the pandemic inflicting a contraction on the Canadian economy in 2020, banks will be forced to adapt their IT/technology expenses in the next few years. Despite the economic slowdown, several factors will drive Canadian banks to increase their tech spend volume through 2024 and digitally transform.

Three Key Questions This Report Will Answer:

• Which banks are spending the most on IT and tech and what’s driving their growth? What do providers stand to gain in enabling digital ordering?
• What are the principal growth drivers and inhibitors impacting Canadian banks’ IT and tech spend?
• How is the pandemic impacting these factors, and what kind of trajectory for Canadian banks’ IT and tech spend can we expect to see through 2024?

WHAT’S IN THIS REPORT? This report is based on eMarketer's Canadian Banking IT/Technology Expenses forecast, compiled in May 2020. The forecast looks at the five largest consumer-facing Canadian banks by assets as of Q1 2020, subject to data availability, and specifically at the percentage of each institution's noninterest expenditure that goes toward IT and technology. The types of expenses included under the 'IT/tech' umbrella are core systems maintenance, modernization, innovation, transformative technology, data processing, equipment, software, digital initiatives, compliance, and cybersecurity spending, while salaries are excluded.