European financial services firms will spend £67.6bn on
technology this year and £72.1bn next year, but rates of growth are
falling as a knock on effect of the US sub-prime mortgage crisis,
according to astudy from research firm
Celnet.
The
growth in spending on IT among financial institutions across
the globe was 5.9% higher in 2007 compared with 2006, at £172.3bn,
but it was significantly lower than the increase seen in 2006 which
was 8.7%.
"Growth rates have dropped across all regions, contributing to
this lower total," said Jacob Jegher, senior analyst in Celent's
banking group. "US financial institutions have been hit
particularly hard and challenges in this region are contributing to
growth declines. The credit crunch and looming economic uncertainty
have North American financial institutions tightening their belts.
Ripples from the US sub-prime crisis are likely to have a dampening
effect on other regions as well."
