Banks’ IT Spending: Progress Report
Even as banks are reporting improved financials, they continue to be slow in re-engaging on IT investments. American Banker reports that there are some financial institutions that are spending on specific projects, but not many are confident enough to move forward on the big investments that tech vendors have been waiting for. “Banks are going to really look to that as one of the latter things they do when there’s uncertainty around their capital structure, credit quality or regulatory environment,” said Darrin Peller, a vice president who covers technology vendors for Barclays Capital.
Bank information technology spending in North America is expected to increase 3.9 percent this year to $53.4 billion, according to a report that research firm Celent released in January. But, what’s interesting is the discussion around where banks are actually spending: very specific areas such as mobile banking, bill payment services and Internet systems.
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