18 August 2017
visit www.avoka.com

More cuts in bank IT staff and budgets expected

24 January 2003  |  7042 views  |  0 Finextra report 2

Financial institutions expect more cuts to IT budgets and staff in 2003. This is the key finding of Finextra's Financial Technology Strategies report and survey, which analyses banks' and financial institutions' strategic business directions, technology goals and spending plans for the year ahead.

The survey of over 70 of the world's leading banks finds cost reduction is the main factor driving business and technology strategies as financial institutions strive to make their existing processes more efficient.

This is good news for the back office and risk management and compliance functions, which are seen to deliver a measurable payback to bottomline business processes.

Straight-through processing continues to command attention for the same reasons, but most of the budget will be directed to achieving internal efficiencies. Spending on industry-wide interoperability projects, such as virtual matching utilities, and improvements to buy-sell-side communications assumes a lower profile.

Continuing the cost reduction theme, IT staff numbers are expected to decline further in 2003 as a consequence of fewer internal projects and a move towards more tactical IT outsourcing. Almost one third of institutions are expecting a decrease in the number of internal IT staff, compared with less than 20 per cent expecting an increase.

Despite the gloom, survey respondents show a positive appreciation of the value of technology in helping to alleviate the worst aspects of the economic downturn and contribute to lowering costs.

The full report, Financial Technology Strategies 2003, is available free of charge to employees of banks and financial institutions.

See our reports and surveys page for further details.

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

Redundancies at Misys as bank IT spending cuts bite

Redundancies at Misys as bank IT spending cuts bite

23 January 2003  |  5686 views  |  0 comments
Finexpo heads for sell out

Finexpo heads for sell out

22 January 2003  |  4665 views  |  0 comments
FMC to report Q3 net loss as spending deferrals worsen

FMC to report Q3 net loss as spending deferrals worsen

05 December 2002  |  2814 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
visit www.worldpaymentsreport.comvisit www.abe-eba.euvisit www.niceactimize.com

Who is commenting?

Top topics

Most viewed Most shared
China preps central clearing house for mobile payments providersChina preps central clearing house for mob...
10133 views comments | 8 tweets | 16 linkedin
Monzo appoints Curve co-founder Foster-Carter COOMonzo appoints Curve co-founder Foster-Car...
8402 views comments | 1 tweets | 3 linkedin
hands typing furiouslyCompliance: Overcome the data deficit
7844 views 0 | 1 tweets | 9 linkedin
Uneasy sits the crown as cash use continues declineUneasy sits the crown as cash use continue...
7766 views comments | 3 tweets | 7 linkedin