Investment banks’ technology initiatives: highlights
Banks’ investment in technology is accelerating as banks fight to maintain/develop edge in electronic markets; improve risk management; and achieve savings by rationalising complex system architectures.
Such investment is time consuming – and costly. Programmes announced in recent years typically boosted the proportion of tech & ops in their total operating costs by 10% during the peak phase of execution.
The IT investment pays off, however. Banks that completed their investment programmes are devoting the same proportion of total operating costs to running efficient new systems as banks that barely started their upgrades. In the new ‘e-world’, we expect this IT gap will grow; and doubt the long-term viability of spreadsheet-based and similar solutions.