Corporate & Investment Banks Boost Tech Spending Amid Rising Competition

Global corporate and investment banks are escalating technology expenditures to meet client demands and counter mounting competition from traditional peers and nonbank liquidity providers. The top 12 CIBs allocated $159 billion in 2024—a 3.4% year-over-year increase—while revenues surged 9% to $262.9 billion.

Technology captured the lion's share of budget growth, with investments jumping 29% since 2019. U.S. banks led the charge at 34% growth, outpacing EMEA counterparts' 20% increase. Front-office functions consumed half of total spending, primarily for compensation, with the remainder funding operations, controls, and support roles.

"This isn't a flash in the pan—it's structural transformation," notes Crisil Coalition Greenwich analyst Stephen Bruel. From 2019-2024, aggregate spending climbed 17.2% globally, with U.S. and EU banks growing 19.5% and 12.9% respectively.