Blockchain included in banks' growing tech spending

A report by technology firm Ovum has found that globally, 61% of banks expect to increase their payment technology expenditure in 2016, up from the 52% that increased their spending in 2015. The boost in investment is thought to be driven by a need to improve cybersecurity measures, but is also aimed at exploring the potential of blockchain technology and mobile payments technology.

Blockchain and mobile payments are sending banks’ spend on payment tech soaring in 2016

Blockchain and mobile payments are sending payment tech spend soaring next year, new research has found.

Globally, some 61 per cent of banks expect to increase their payment technology expenditure next year, according to a report from tech firm Ovum. This is a significant rise on 2015, when 52 per cent hiked their spending in the sector.

Nearly a third of banks are expecting to boost their spend by six per cent or more, according to Gilles Ubaghs, a senior analyst at Ovum:

Investment levels in payments have been high in recent years, driven by the need to deploy new payment services, cope with the overall rise in electronic transaction volumes, and replace ageing legacy infrastructure. 2016 will see an increase in this trend.

The investment boost is partly a response to increased security worries causing banks to beef up their defences, but it’s also driven by new technologies like the blockchain and mobile payments.

Read more: Barclays is teaming up with two blockchain startups

Ubaghs said that although not all organisations will need the blockchain, many can still benefit from investing in it: