Banking And Financial Services: Tech Innovation Is The Key To Growth
The industry spends more than average on IT and relies heavily on business intelligence tools and wireless e-mail
U.S. financial services providers and banks are under tough regulatory pressure, and tech innovation is helping them sustain growth and stay competitive. According to the InformationWeek 500 survey, 72% of banking and financial companies are creating new products and services for customers this year, more than most other industries.
They're pouring big bucks into IT to accomplish that. Financial services providers and banks spend an average of 41% of their IT budget on new projects, about double what most other businesses spend. Sixty-nine percent expect to spend more on IT this year than last. Financial services providers are dealing with trends like globalization, service and technology innovation, regulation, risk management, and aging populations, which are having a huge impact on the industry, according to a study by consulting firm Deloitte & Touche.
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Business intelligence tools and wireless are the technologies of choice for innovation. Some 63% of the companies have deployed BI tools to more than half their workers, and 61% provide wireless e-mail access to a majority of their workforce.
Most of the companies are focused on domestic growth and may be missing an opportunity to penetrate emerging markets with low-cost business models. Only 23% of InformationWeek 500 financial services providers plan to pursue new global opportunities this year.
At No. 1, the Principal Financial Group was the top ranked company in this sector.