Magazine article Mortgage Banking

The Wallet

Magazine article Mortgage Banking

The Wallet

Article excerpt

According to technology analysts, financial institution technology spending growth will continue in 2007. "It's going to look a lot like it did in 2006. We're looking for a 3 percent growth rate," said Jeanne Capachin, research vice president, global banking, for Framingham, Massachusetts-based Financial Insights, an IDC Company.

Most of the industry technology spending will be driven by regulatory/compliance and market forces. Because of the need to protect customer information for legal and business purposes, fraud prevention and regulatory/compliance spending are intertwined.

Half of all bank chief information officers (ClOs) and chief technology officers (CTOs) say their information technology (IT) budgets are "very strained" by regulatory requirements, according to a 2006 survey by Celent LLC, Boston. Another one-third said that regulatory requirements were having a moderate impact on IT spending.

According to the Celent survey, banking executives' top IT spending initiatives for 2006 were related to the following:

* compliance/regulatory (55 percent);

* security (55 percent);

* customer relationship strategy initiatives (45 percent);

* service-oriented architecture (36 percent);

* core banking enhancements (18 percent);

* lending system upgrades (18 percent); and

* branch system upgrades (18 percent). …

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