23 February 2017
Visit EBAday.com

US banks to increase IT spending

16 January 2002  |  3293 views  |  0 abacus

US banks will increase their IT spending this year by over 4% compared to 2001, according to a new report from Celent Communications.

The report predicts that despite the current recessionary environment in the USA, banks will spend over $34 billion on technology in 2002. Celent suggests top banks are spending in excess of $2 billion each annually on technology, with the largest bank reaching a spending level of $5 billion in 2002.

The figures chime with the results of a recent Gartner/SoundView survey of IT executives which forecast a five per cent increase in technology spending in the financial sector. According to the survey results, vendors in the security, storage, Web-based applications, PDA and Web integration services arenas are most likely to attract new spending in 2002. Mainframe, contract labour services and desktop products and services are low on the priority list

Octavio Marenzi, managing director at Celent, notes: "A very large proportion of their spending is on maintaining existing infrastructure. However, banks are also increasingly viewing technology as a competitive differentiator, as a tool with which to wrest market share from their competition."

The Celent report points to consolidation in the banking industry as a key driver of increased spending on IT. According to Octavio Marenzi this is because larger banks do not only spend more on IT than smaller institutions, they spend a greater percentage overall.

"The largest commercial banks in the USA spend as much as 25% of their total expenses on IT, with certain specialist banks spending even higher percentages. Small banks tend to spend a far lower percentage of their total expenses on technology," says Marenzi.


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

Terror fears spark storage technology spending boom

Terror fears spark storage technology spending boom

11 January 2002  |  2935 views  |  0 comments
Financial institution privacy spending misdirected, says Meridien

Financial institution privacy spending misdirected, says Meridien

10 January 2002  |  2728 views  |  0 comments
CRM spending curbs imminent, says Meridien

CRM spending curbs imminent, says Meridien

03 January 2002  |  3600 views  |  0 comments
Technology sound investment for custodians, says Celent

Technology sound investment for custodians, says Celent

18 December 2001  |  2832 views  |  0 comments
US banks commit to digital cheque imaging

US banks commit to digital cheque imaging

14 December 2001  |  3308 views  |  0 comments
Outsourcing would cut 25% off IT budgets, says Datamonitor

Outsourcing would cut 25% off IT budgets, says Datamonitor

05 December 2001  |  3701 views  |  0 comments
US retail banks set to increase CRM investment

US retail banks set to increase CRM investment

26 November 2001  |  2904 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
http://www.financialcrimerisk.fiserv.com/aml?r=finextra

Top topics

Most viewed Most shared
IBM and Visa join forces to turn billions of connected devices into points of saleIBM and Visa join forces to turn billions...
19033 views 11 comments | 56 tweets | 92 linkedin
hands typing furiouslyBlockchain Technology
10843 views 1 | 9 tweets | 2 linkedin
EBA to relax controversial PSD2 authentication rulesEBA to relax controversial PSD2 authentica...
10238 views comments | 49 tweets | 67 linkedin
RBS to become fintech fund and high street outlet for challenger banks under HMT remedyRBS to become fintech fund and high street...
7696 views comments | 37 tweets | 33 linkedin
Standard Chartered connects corporate customers to WeChatStandard Chartered connects corporate cust...
6109 views comments | 17 tweets | 19 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job