Technology is the most significant capital investment that banks and financial organisations will make in 2015, with the majority of firms planning to increase their spending on IT this year, Contractor UK reports.
In a report looking at spending plans for the next 12 months, employers’ group CBI and accountancy firm PwC found that 75% of respondents anticipated providing more money for IT solutions. In comparison, just 36% planned to spend more money on land or buildings, and 19% expected to boost their marketing budgets.
The key drivers for these larger investments were said to be providing new services, increasing efficiency and reaching new customers.
Of the eight types of financial firm that were surveyed, building societies were found to be the most ‘IT-friendly,’ with the proportion of those planning to spend more on IT rising from 54% in the previous quarter to 68% for the next one.
The reason for this is two-fold: they are the firm most likely to view IT systems as essential for company growth; whilst at the same time being the most likely to be delivered a bigger IT budget.
Aside from building societies, insurers were another key player when it came to IT spending in the financial sector. Life insurers in particular were planning to invest “considerably more” in IT than they did last year.
However, both insurers and banks are likely to focus on IT software as opposed to apps and systems. In fact, only 1% of banks currently see apps or systems as enablers of growth.