Financial services firms expect to increase their IT spending this year due to a raft of impending regulations and weak market growth, according to research.
By submitting your email address, you agree to receive emails regarding relevant topic offers from TechTarget and its partners. You can withdraw your consent at any time. Contact TechTarget at 275 Grove Street, Newton, MA.
A close study of IT directors in the capital markets sector by Ovum found organisations expected to increase IT budgets by 1.1% in 2013. This compares with a growth in IT expenditure of 0.6% in 2012.
Rik Turner, senior analyst at Ovum, said regulatory compliance, a desire to improve infrastructure and investments in client servicing were driving IT spending in Europe.
Customer experience offers a key opportunity to build investor loyalty and create a competitive advantage, said Turner.
Although real-time reporting is still some way off, a move towards intra-day reporting via multiple client devices will enhance the customer experience, Turner added.
He said in the current climate even a modest increase in IT spend was positive. “The buy side is finding ways to increase returns by reducing the reliance on a single broker and adopting multi-prime strategies, as well as through direct market access (DMA),” said Turner.
“There is no doubt the buy side is becoming more tech-savvy and looking to lower its dependence on brokers – the continuing fall-out from the Lehman debacle.
"Of course, with a raft of regulation – including EMIR and MFID II on the horizon – spending on compliance will remain a high priority.”