North American banks will spend $118.6 billion on IT in 2013, according to a Jan. 31 report from UK-based Ovum Ltd. The top IT priorities for banks in 2013 are data privacy, followed by risk management and “know your customer” initiatives, according to the report.

IT budgets are on the rise across the globe, driven by the quest for increased revenue and customer satisfaction, and cost-cutting dropping to its lowest level since 2008.

US and Canadian banks will spend 3.3% more than last year, compared to 1.8% growth in Europe and a 5.1% jump in the Asia-Pacific region. In Europe, the increase in spending will focus on online and mobile banking, as well as digital marketing and location-based mobile services.

The report’s author, Jaroslaw Knapnik, commented, “The level of investment in digital channels gives a clear indication that banks are fully cognizant of the growing expectations of their customers, as well as the opportunities they present.”