Report Buyer, the online destination for business intelligence for major industry sectors, has now added a new report on increasing IT budgets within financial institutions. Business Trends: Financial Markets – Technology trends for financial services institutions, forecasts that 2007 could be a Lucrative year for those providing IT services to financial institutions.
Financial institutions have realised that technology investment is vital for long-term sustainability and maintaining a competitive market position. There is a growing need to offer superior technology and connectivity options to customers. As a result strong uptake of electronic trading is expected in the near future. This is driving heavy investment in developing tailor made IT solutions.
Investments and securities services firms are looking to better manage, hedge and mitigate their risk by investing heavily in risk management systems; meanwhile fund managers are increasing IT spend to improve their payment systems. Hedge funds are also using the need for increased revenue and tracking liquidity (critical to their business models) as catalysts to improve their IT services. Consequently, there has seen a significant increase in IT budget in the trading and brokerage, fund management, hedge funds and the investments and securities services sectors.
In addition, security issues are requiring greater IT investment. Phishing and anti-money laundering initiatives have emerged as key focus areas to satisfy regulatory requirements. Institutions must have appropriate and adequate risk measures and controls in place.
This study also reveals that, while a large number of institutions would not consider outsourcing all of their IT infrastructure, some do and this trend is likely to continue. This opens up a lucrative market for technology vendors to offer applocation service provider (ASP) risk management solutions targeted at hedge funds.
This report is a primary research study surveying 100 leading financial markets institutions in the US, UK, Germany, France, Benelux and Switzerland conducted in Q4 2006 to determine strategies, plans and priorities for technology strategy and investment for 2007. The report examines overall IT strategy and investment priorities and drills into the spend areas of corporate banking, electronic trading and business operations to support these.
Report Buyer product ID: DAT04588
