The Coronavirus pandemic shook up the global economic landscape in 2020—and the Canadian economy has not been spared. There were about 200,000 recorded cases at the time of writing, and still rising. Amid government-enforced lockdowns, the economy is expected to shrink by 7.1% in 2020, following 1.7% growth in 2019—and Canadian banks’ discretionary digital investments will suffer as a result.

FORECAST: Total Annual IT/Technology Expenses Of Canadian Banks

Canadian banks’ discretionary digital investments will suffer as a result of ongoing lockdowns.

Insider Intelligence

The Canada Bank Tech Spend Forecast report is split into two sections:

  • First, the report examines both the underlying factors and trends that will impact Candian banks’ IT/tech expenses across the forecast period of 2020-2024 and also highlight those factors specific to each phase of the pandemic. Given the significance of the health crisis and its impact on economic recovery and IT/technology expenditures in turn, Insider Intelligence digs into the three phases of the virus’s expected trajectory: Lockdown (early 2020–late 2021), Lifting of restrictions (late 2021–early 2022), and the New Normal (early 2022–2024 and beyond). 
  • Next, Insider Intelligence looks at the IT/technology expenditure trends of the five largest Canadian banks by asset size. The report delves into the specific factors behind each bank’s expenditure growth rates. 

In the Canada Banking Tech Spend Forecast, Insider Intelligence highlights the underlying factors expected to remain as significant drivers or inhibitors of Canadian banks’ IT/tech spend through 2024. These factors include: 

  • The economic slowdown
  • Banks pushing to enhance their customer experience
  • Rising cybersecurity expenses

Insider Intelligence explores factors unique to each separate phase of the pandemic and then delves into specific factors that will impact