Nearly three quarters of financial services firms to increase IT spending

Almost three quarters of financial services firms across the world are expected to spend more on IT over the next two years, according to research.

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Almost three quarters of financial services firms across the world are expected to spend more on IT over the next two years, according to research.

The International Securities Association for Institutional Trade Communication (ISITC), the industry trade group focused on standards in transaction processing, polled executives from leading investment managers, broker/dealers and vendors for its annual member survey.

Findings revealed uncertainty within the financial services industry with 82 percent stating that the future of the industry is "cloudy" and that it's "unclear" as to what the market will look like in 2020.

In addition, 45 percent said the economy is not poised for recovery but for continued slow growth, and 24 percent were "uncertain".

However 68 percent said their firms were improving their infrastructure and processes, with 71 percent expecting IT spending at their firms to increase over the next two years.

Jan Snitzer, chair of ISITC, said: "What is clear is that although progress has been made in improving our industry's infrastructure and processes, there is still much room for us to improve. ISITC's mission is to make the industry less 'cloudy' and more 'clear' through developing industry best practices and standards."

One of many firms investing heavily in IT is JP Morgan Chase, which recently said it was overhauling business processes, improving product development and slashing the costs of trading, as part of a major initiative. The bank is implementing global trading and asset servicing platforms and investing heavily in fast-growing areas such as mobile payments.

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