The financial services industry continues to face severe tests from new regulations. As the compliance burden tightens, banks and capital markets firms are increasing their IT spend. A recent study by IDC predicts that total IT spending for the U.S. financial services industry will grow five percent this year to reach about USD 91 billion. This growth is largely driven by regulatory spending as financial firms take an increasingly proactive approach to leveraging new technologies to ensure effective compliance. Read Full Story Visit: http://www.fsokx.com/Thought-Leadership-Prespecitves/Regulations-Drive-IT-Spending-in-Financial-Services

1. Regulations Drive IT Spending in
Financial Services
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2. Introduction:
The financial services industry continues to face severe tests from new
regulations. As the compliance burden tightens, banks and capital markets
firms are increasing their IT spend. A recent study by IDC predicts that total IT
spending for the U.S. financial services industry will grow five percent this
year to reach about USD 91 billion. This growth is largely driven by regulatory
spending as financial firms take an increasingly proactive approach to
leveraging new technologies to ensure effective compliance.
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3. Drivers of Regulatory IT Spending:
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4. Business Functions Where Spending will Increase:
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5. Conclusion:
There is no doubt that regulatory changes have forced banks and capital
market firms to increase spending on technologies and to develop strategies
to become more efficient, drive profitable growth, and remain compliant.
Looking at the current industry environment, regulatory pressures will only
increase and keep IT spending ticking upward. Since a large portion of total IT
spending will be directed toward external providers, there are market
opportunities for technology service and solution providers that can help
financial firms adapt to these changing market dynamics.
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