Financial Institutions Expect More Cuts to IT Budgets and Staff

IT budgets across the financial sector will continue to suffer a downturn, although back-office departments will see moderate growth relative to the rest of the organisation, according to a survey of over 70 of the world’s leading banks. Financial Technology Strategies 2003, published by financial technology new service Finextra, also predicted that IT staff numbers will decrease in 2003 as the consequence of fewer internal projects, improved processes and internal efficiencies, and a move towards more tactical IT outsourcing. The report added that cost reduction is currently the main factor driving business and technology strategies as financial institutions make their existing processes more efficient, resulting in increased margins and improved customer service The report is based on a survey of over 70 senior IT decision-makers and strategists from financial institutions, including investment banks, fund management organisations, custodians, central banks and exchanges.

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