12:30 PM
Connect Directly

Banks’ Risk IT Spending to See Modest Growth

Bank IT spending is likely to come under greater scrutiny as the credit crisis continues.

One way banks can do that is to utilize system deployments, such as analytics, more efficiently, Rogers says. "Don't confine analytics to a specialist group — make them easily deployed throughout the organization," he advises. "Banks will look for relevant models that can be managed and customized in a controlled environment so they can react to the market. So it's not just the analytics, but how they're deployed in the bank that matters."

Oliver Wyman's Howard-Jones says banks need to be more innovative when it comes to technology, including how they do business with vendors. "Banks should take a collaborative approach to software development, where they work with the vendors and share the royalties when the vendor sells the software," he contends. "It makes business sense to share the development risk. Many times, banks' expectations regarding plug-and-play capabilities of a solution are not met, so they must spend more to customize it. This isn't necessarily intentional by the vendors. But these hidden costs add up. With a collaborative development approach, the risk around these hidden costs can be eliminated."

2 of 2
Comment  | 
Print  | 
More Insights
Register for Bank Systems & Technology Newsletters
White Papers
Current Issue
Bank Systems & Technology Oct. 14, 2014
Bank Systems & Technology's new Must Reads is a compendium of our best recent coverage of customer analytics. Learn what big data means for banks, meet Wells Fargo CDO Charles Thomas, find out how to connect with your Gen Y customers, and more.
Bank Systems & Technology Radio
Archived Audio Interviews
Join Bank Systems & Technology Associate Editor Bryan Yurcan, and guests Karen Massey and Jerry Silva from IDC Financial Insights, for a conversation about the firm's 11th annual FinTech rankings.