UK finance sector ups IT spending amid fintech uncertainty
18 January 2016 | 8362 views | 0
British financial services firms expect IT to be the main area to see an increase in capital spending over the next year as the industry braces itself for the fintech revolution.
According to a the latest CBI and PwC survey of 100 firms, respondents are cutting back their capital spending in most areas because of poor returns. Bucking the trend is marketing, which will see growing spending at some firms as they seek to win new business, and IT, which is the area seen as by far the most likely to have an increased budget in 2016.
Rain Newton-Smith, director for economics, at the CBI says that the rise of fintech is causing "a great deal of uncertainty" within the industry, as established players try to work out how to react to the threats and possibilities posed by new technology.
"Firms in most sectors are looking to upgrade their own platforms over the next five years rather than acquire fintech firms. However, partnerships with fintech firms are seen as a high priority by companies in some sectors, particularly finance houses, insurance brokers and investment managers," says Newton-Smith.