Over the past five years, the G20 has rolled out one of the largest technology and operations projects the financial system has ever seen. National regulators have issued multiple, often conflicting, regulations with differing technical standards, leaving firms sweating to upgrade their legacy systems to keep pace with change demands.
Today, a report
produced by the research firm Celent took a hard look at the progress surrounding technological responses to reforms, such as EMIR and Dodd-Frank. The report, entitled “IT
Spending in Banking: A Global Perspective”, expects global bank spending on IT
to rise to a whopping $179 billion in 2013.
Most interestingly, the majority of the increases are in the Asia-Pacific Region (5.9%) and North America (4%). Europe is glaringly absent from this list, characterised as “dragging” in IT spending, “with little or no growth expected” (0.4%).
What’s going on in Europe? How can the EU’s technology intensive regulatory requirements be resulting in such small upgrade spends?
It seems that senior management at the EU’s largest banks just don’t understand what’s required … and it’s getting late in the game to start playing catch-up.
Recommended Further Reading: