British financial services firms expect to boost IT spending over the next year, with data analysis and process automation two particularly hot areas, according to the latest CBI/PwC survey.
Carried out just before the UK general election, the quarterly survey of 94 FS firms found that most plan to cut back on spending on marketing, land and buildings, and vehicles, plant & machinery.
However, spending on IT is forecast to grow at its fastest for two and a half years, and firms see tech as more important to business growth than at any time since 2009.
With 80% of respondents saying that the main reason for authorising spending is to increase efficiency and speed, many are turning to technology to gain customer insight.
Almost two thirds are actively investing in technologies to enable data analysis, such as customer history and risk profiling, and around half are putting money into process automation
Firms see longer-term potential from other technologies, with 40% saying they may in future invest in artificial intelligence, and 35% seeing potential to invest in situational data analysis (such as sensors and wearables).
Rain Newton-Smith, chief economist, CBI, says: "It’s encouraging to see financial services firms continuing to seek out future opportunities, and staying ahead of the curve when it comes to investment in new and innovative technologies."