IT managed service provider (MSP) Integris has released its latest report, “Understanding US Banks’ Annual IT Spend in 2025,” highlighting key trends and strategic priorities for the banking sector. The report, based on a survey of over 1,000 bank executives, reveals that US banks are significantly ramping up their investments in IT and technology to enhance operational efficiency, improve customer experience, and stay competitive in a rapidly evolving financial landscape. This marks the second year Integris has conducted this comprehensive study, providing valuable insights into the future of IT spending in the banking industry.
Increasing IT Budgets Amid Economic Uncertainty
The report indicates that a majority of US banks plan to increase their IT budgets by at least 10% in 2024, despite ongoing economic uncertainty and rising inflation. This trend reflects the critical role of technology in driving business growth and operational efficiency. For many banks, IT has become the second or third largest expense, underscoring the importance of strategic IT investments. The survey also shows a significant improvement in the ability of bank executives to estimate their annual IT budgets, with 27% of respondents able to do so in 2024, up from just 6% in 2023.
Economic challenges have prompted banks to adopt a more vigilant approach to financial management, with a focus on maximizing the return on IT investments. The report highlights a decrease in concerns about IT budgets, from over 33% in 2023 to 28% in 2024, and an increase in satisfaction with IT investments, rising from 67% to 72%. These improvements suggest that banks are becoming more adept at managing their IT expenditures and leveraging technology to achieve their strategic goals.
Key Strategic Priorities: Cybersecurity, Data Analytics, and Digital Transformation
The report identifies cybersecurity, data analytics, and digital transformation as the top strategic priorities for US banks in 2025. Cybersecurity remains the foremost concern, with 86% of bank executives citing it as a critical area of focus. The increasing sophistication of cyber threats and the need to protect sensitive customer data have driven banks to invest heavily in advanced security measures. This includes implementing robust cybersecurity frameworks, conducting regular risk assessments, and enhancing incident response capabilities.
Data analytics is another key priority, with 42% of respondents emphasizing its importance. Banks are leveraging data analytics to gain deeper insights into customer behavior, optimize operations, and drive personalized marketing strategies. The ability to analyze large volumes of data in real-time enables banks to make informed decisions, improve customer engagement, and enhance overall business performance.
Digital transformation and customer experience are also high on the agenda, with 40% of bank executives prioritizing these areas. The shift towards digital banking has accelerated in recent years, driven by changing customer expectations and advancements in technology. Banks are investing in digital platforms, mobile banking apps, and AI-driven customer service solutions to provide seamless and convenient banking experiences. This focus on digital transformation is essential for banks to remain competitive and meet the evolving needs of their customers.
Challenges and Opportunities in IT Investment
Despite the positive trends, the report highlights several challenges that banks face in their IT investment journey. One of the main challenges is the lack of clear insight into IT expenditures, with nearly 75% of banks still struggling to fully understand their IT spending. This lack of visibility can hinder effective financial management and decision-making. To address this issue, banks need to implement more robust financial oversight mechanisms and leverage technology to gain better visibility into their IT investments.
Another challenge is the need for continuous improvement in IT services. While satisfaction with IT investments has increased, only 26% of US banks rated their IT service as “Great,” up from 13% last year. This indicates that there is still significant room for improvement in the quality and effectiveness of IT services. Banks must focus on enhancing their IT infrastructure, adopting best practices, and investing in employee training to ensure that their IT services meet the highest standards.
The report also highlights the opportunities that come with increased IT investment. As banks continue to invest in technology, they can unlock new revenue streams, improve operational efficiency, and enhance customer satisfaction. The adoption of new tools and processes can drive innovation and enable banks to stay ahead of the competition. By embracing digital transformation and leveraging advanced technologies, banks can position themselves for long-term success in a rapidly changing financial landscape.
