The world’s top 12 corporate and investment banks (CIBs) spent a staggering $159 billion in 2024 to run their global businesses across origination & advisory, equities, fixed income, trade finance, cash management, and securities services, a 3.4% increase from the previous year, according to a new research from Crisil Coalition Greenwich.
Notably, technology spending alone accounted for nearly $35 billion, second only to front-office compensation.
This sharp increase in tech allocation reflects a clear strategic pivot: banks are betting on digital innovation to secure long-term relevance and profitability.
“Tech is the core enabler of banks’ long-term strategies, whether directing investment towards automating processes, strengthening risk and control frameworks, or improving client analytics and digital platforms,” said Stephen Bruel, Head of Derivatives and FX practice on the Market Structure and Technology team at Crisil Coalition Greenwich and author of Corporate and investment bank spending in unpredictable times.
“The aim tends to be twofold: protecting franchise relevance in an increasingly electronic market and creating scale efficiencies that underpin sustainable growth,” he told Traders Magazine.
The rise in tech spending aligns with strong revenue momentum. In 2024, the top global CIBs grew revenues by 9%, reaching $262.9 billion. From 2019 to 2024, total operational spending climbed 17.2% globally, with U.S. banks increasing their spend by 19.5%—outpacing the EU’s 12.9% rise, according to the findings. Technology again stood out, growing nearly 29% globally over that period, with U.S. banks driving a 34% increase versus 20% in EMEA.
This divergence signals a widening gap between regional investment strategies, raising concerns about digital competitiveness.
“The higher U.S. bank tech spend reflects both greater revenue scale and the advantage of having kicked off substantial investment sooner than EU counterparts,” Bruel explained.
“And while spending levels matter, competitive advantage depends on whether investments are targeted at the right capabilities and executed efficiently.”
Despite revenue gains and clear strategic priorities, banks are operating in a volatile global environment—marked by geopolitical tensions, persistent inflation, and a shifting regulatory landscape. Under these conditions, managing return on equity (RoE) continues to be a top priority.
“Banks indicate that they are moving towards tighter alignment between tech spend and front-office priorities—tying investment decisions directly to revenue growth, client engagement, and competitive positioning,” said Bruel. “Increased governance, transparency, and ROI discipline are being applied to tech budgets, ensuring spend is not just larger but smarter.”
Across the CIB landscape, roughly half of all spending continues to go toward front-office roles—primarily compensation—while the remaining half supports operations, technology, risk and control functions, and human resources. Tech must therefore serve dual mandates: driving efficiency and unlocking new revenue streams, according to the report.
“Cost pressure drives more emphasis on efficiency gains, so investments serve both revenue ambition and cost-to-income resilience,” Bruel said.
The rapid increase in tech spending isn’t just a response to present challenges—it’s a strategic investment aimed at securing long-term success and resilience.
“We’re seeing a clear shift in mindset,” Bruel emphasized. “The banks that win over the next decade will be the ones that marry strategic clarity with execution discipline—and that means using technology not just to modernize, but to fundamentally reshape how they serve clients and manage risk.”
Looking forward, the disparity in tech investment growth between U.S. and EU banks may prompt strategic recalibrations, especially in Europe, where competitive pressure from both American banks and nonbank liquidity providers is intensifying.
Yet regardless of geography, technology has become essential. For banks aiming to thrive in a complex, fast-moving financial ecosystem, it’s the cornerstone of sustainable growth.
“It’s not just about spending more. It’s about spending wisely—because that’s what will separate the leaders from the laggards,” Bruel concluded.
