Technology spending is on the rise as the world’s biggest corporate and investment banks (CIB) work to meet their client’s needs and fight off competition from both peers and nonbank liquidity providers.

Crisil Coalition Greenwich research indicates that the top 12 corporate and investment banks globally spent $159 billion in 2024 to operate their businesses across origination & advisory, equities, fixed income, trade finance, cash management, and securities services, up 3.4% from 2023. These banks saw revenue grow 9% in the same period, reaching $262.9 billion in 2024.

“This spending growth is a continuation of a longer-term trend,” says Stephen Bruel, Senior Analyst on the Market Structure & Technology team at Crisil Coalition Greenwich and author of Corporate and investment bank spending in unpredictable times. “From 2019 to 2024, overall spending increased 17.2% globally, up 19.5% in the U.S. and up 12.9% in the EU.”

Spending Breakdown
Technology has been the primary beneficiary of increased spending. Investment in technology has grown almost 29% overall during this time, with U.S. bank spending in this area growing 34% since 2019, compared to a 20% increase for EMEA-based banks.

About half of overall CIB spending was allocated to the front office, primarily for people (compensation and benefits), and the other half to functional areas including operations, technology, control, and other supporting roles such as human resources.

In 2024, the global investment banks that make up the Coalition Index spent nearly $35 billion on technology, making it the second largest line item within the CIB business, trailing only front-office compensation and benefits, which came in at approximately $60 billion.

“Senior decision-makers are focused on ensuring that spend in the back office enables front-office strategies,” says Stephen Bruel.

Spending in Volatile Times
Despite a recovery in the U.S. equity markets and some impressive revenue numbers from trading desks, concerns abound, ranging from supply chain disruptions, geopolitical conflicts, and more challenges in global trade. Banks must therefore focus on optimizing spending, including both overall spend and the usage of their financial resources.

“The volatility that hit the markets in early 2025 could increase what has already been a meaningful focus by banks on their spending,” says Stephen Bruel. “While banks understand all too well that spending is required to serve clients, achieve growth and create scale, they must also control costs to improve profitability and return on equity.”

Corporate and investment bank spending in unpredictable times tracks overall spending trends, breaks down spending by function, calculates technology intensity for the major investment banks, and examines banks’ strategy related to spending, revenues, and profitability.

Source: Crisil Coalition Greenwich