Investing in IT infrastructure, even during the economic downturn, is a common thread among high performing banks, according to a report released today by Boston-based analysts Aite Group.
The report, which tracked IT spending in financial services, polled 80 CIOs at large financial institutions across North America, Europe, the Middle East and Asia in Q1 of 2011 and analyzed the spending patterns of those institutions.
Among the 80 financial institutions surveyed, Aite Group categorized 24 as "High Performers" based on their 2009 to 2011 operating performance and superior return on operating capital, equity, and assets. The analysts said those banks continued to invest in IT even during the lean times in 2008-09. In 2009, nearly half of all surveyed banks increased their IT budget over 2008 levels. In 2010, however, nearly two-thirds of banks increased their IT spending while just 36 percent of others followed suit. Those deemed high performers are also more likely to have deployed mobile banking services and to outsource IT solutions.
"Across the technologies included in our survey, high-performing banks tended to outsource IT functions and processes to vendors, but not because they have a preference for doing so," said Ron Shevlin, senior analyst with Aite Group and co-author of the report, in a prepared statement. "They analyze technology needs and capabilities on a case-by-case basis and determine for each area whether outsourcing is the right approach. To operate in a heavily outsourced environment, high-performing banks must have effective processes for selecting, managing, and evaluating IT vendors."
To view the complete report, please visit Aite Group's website.