Management Strategies

10:01 AM
Connect Directly
Facebook
Twitter
Google+
RSS
E-Mail
50%
50%

UK Banks Plan Big Investment in IT: Report

A survey of UK financial services firms finds that IT spending is expected to grow rapidly over the next 12 months.

IT spending by financial services firms in the UK is expected to grow rapidly over the next 12 months, according to results from a survey conducted by CBI and PwC.

Though technology spending is expected to rise among insurance and capital markets firms, it is banks that will pursue the biggest investment in IT over the next year, the survey found. According to the survey, the main factors driving this investment are increasing speed/efficiency, replacement of old systems, and facilitating the provision of new services.

After IT, the next highest categories of investment financial firms will focus on over the next 12 months include marketing, land and buildings, and vehicles and machinery, according to the survey.

Overall, profitability in the financial services sector continued to grow, but at a more moderate pace compared with the previous quarter, the survey found. Profits are expected to grow at a similar rate over the next three months.

“Banks need to adopt bold new strategies as they face challenges around regaining trust, legacy issues, regulation and technology," said Kevin Burrowes, PwC financial services leader said in a written statement. "Digital must be at the heart of their business as new entrants such as challenger banks, peer-to-peer lending and crowdfunding all have one thing in common – digital platforms which make the most out of big data and really focus on customer needs”

[See Also: Bank IT Spend Projected to Reach $215 Billion in 2014]

Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as a municipal and courts reporter for daily newspapers in upstate New York, Bryan has ... View Full Bio

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.
Slideshows
Video
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.