More structure budget allocation is required as efficiency needs drive western European banks’ IT spending. According to research company IDC, western European banks will increase their IT-related invested by a compound annual growth rate of 7% between 2002 and 2007. Total IT spending will reach $52bn in 2006, from $37bn in 2002.
According to the report, western European banks are refocusing on enhancing their infrastructure as the business environment is becoming calmer. “Efficiency remains the first objective of bank IT investments. As a consequence of their strong cost cutting policies, banks have realised that the only way to keep their operational costs under control is to rely strongly on IT,” says Daniele Bonfanti, programme manager, European IT opportunity, financial services, at IDC.
