24 October 2017

UK finance sector ups IT spending amid fintech uncertainty

18 January 2016  |  8675 views  |  0 Man drawing Graph on Glass wall 1

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.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Banks to up spending on payments

Banks to up spending on payments

16 December 2015  |  11251 views  |  0 comments | 25 tweets | 28 linkedin
Bank spend on blockchain tech to top $1 billion by 2017 - Magister Advisors

Bank spend on blockchain tech to top $1 billion by 2017 - Magister Advisors

14 December 2015  |  14450 views  |  0 comments | 38 tweets | 27 linkedin
Firms focus spending on smaller fintech deals

Firms focus spending on smaller fintech deals

11 December 2015  |  5350 views  |  0 comments | 11 tweets | 3 linkedin
Budgets up, but bank IT spending tipped to decline on dollar strength - Gartner

Budgets up, but bank IT spending tipped to decline on dollar strength - Gartner

23 September 2015  |  7154 views  |  0 comments | 11 tweets | 8 linkedin
UK banks' IT spending to increase - CBI/PwC Report

UK banks' IT spending to increase - CBI/PwC Report

30 March 2015  |  10229 views  |  0 comments | 16 tweets | 11 linkedin
IT budgets up as business volumes improve - CBI/PwC

IT budgets up as business volumes improve - CBI/PwC

19 January 2015  |  5849 views  |  0 comments | 12 tweets | 5 linkedin

Related blogs

Create a blog about this story (membership required)
Register nowvisit www.atos.netvisit www.innotribe.com

Top topics

Most viewed Most shared
Mastercard to roll out blockchain APIMastercard to roll out blockchain API
20592 views comments | 31 tweets | 44 linkedin
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
15555 views comments | 24 tweets | 33 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
11172 views comments | 12 tweets | 23 linkedin

Featured job

Competitive base + commission + benefits
Denmark, Finland, Iceland, Norway or Sweden

Find your next job