The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Aite Group Predicts Average IT Budget Cut of 5% for 2009 for US Firms

Originally appeared in MiFID Monitor

US financial services firms will experience an average technology budget cut of 5% for 2009, according to a recent report by consulting firm Aite Group. The report, which is based on surveys of 28 senior technology executives at a cross section of US-based capital markets firms, indicates that these firms will spend roughly US$40 billion on technology in 2009, a US$2 billion cut from 2008 spending.

The firm also claims that projects may be frozen for reasons other than budgetary cuts during the first half of the year. However, Aite Group reckons that a reduction in costs will be a top technology priority over 2009. According to the report, 29% of respondents ranked cost reduction as their number one driver for IT investment.

Adam Honoré, senior analyst with Aite Group and a co-author of the report, believes that firms will have the opportunity to address items that have been sorely neglected under the auspice of effective risk management and reducing human cost. “The continued explosion of market data and asset class expansion are also sound drivers for using 2009 to fix latent issues. For the first time in many years, the expectation is not on supporting growth. Improving data quality, fixing bad business processes, getting rid of paper reporting, and improving exception handling are achievable goals for many technologists,” he explains.

Related content

WEBINAR

Recorded Webinar: Data governance frameworks

You can listen to the recording of this webinar by registering on this page. Data governance – now more than ever – is critical to regulatory compliance, smart business decisions, risk management and cost efficiency. It is also one of the biggest challenges that firms face – and failing to get it right can result...

BLOG

Reformis Adds Matrix IDM and NeoXam to Vendor Partner Programme

Reformis, a buy-side business transformation consultancy, continues to build out its vendor partnership programme with the addition of Matrix IDM’s cloud native data management software, and NeoXam’s Impress reporting solution. These join the company’s list of existing partners and products including IHS Markit’s EDM software, Snowflake’s cloud data platform, and Compliance Solution Strategies’ Accudelta product....

EVENT

RegTech Summit New York City

Now in its 5th year, the RegTech Summit in NYC explores how the North American financial services industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

The Data Management Challenges of Client Onboarding and KYC

This special report accompanies a webinar we held on the popular topic of The Data Management Challenges of Client Onboarding and KYC, discussing the data management challenges of client onboarding and KYC, and detailing new technology solutions that have the potential to automate and streamline onboarding and KYC processes. You can register here to get immediate...