IT Spending Trends in European Banking, 2004

by Axel Pierron, April 26, 2004

Abstract

Paris, France  April 26, 2004

Celent Expects IT Spending at European Banks to Exceed EU44.6 bn in 2004

In a new report, "IT Spending Trends in European Banking, 2004," Celent provides detailed information on the types of IT investments being made this year by European banks.

This year, the leading European bank in terms of IT spending will be HSBC, with an estimated IT budget of EU3billion. Deutsche Bank is second with EU2.6 billion allocated to IT, a position it shares with UBS, which has allocated the same amount to IT. ABN Amro is fourth, with an estimated EU2.2 billion budgeted for IT. These four banks are members of the small club of European banks that are expected to spend more than EU2 billion on IT in 2004.

Despite the economic improvement expected for 2004, European banks will invest less in IT this year than in the past 4 years. In fact, the European banking industry will invest 5% less in IT in 2004 than in 2003, spending a total of EU44,601 million.

"Despite a global IT spending reduction, the investment in new projects will be fairly high this year at 9.5% of the total IT budget," says Axel Pierron, Celent analyst and author of the report.

"Cost reduction will again be a factor, particularly maintenance costs," Pierron adds.

The report includes a clear discussion of the IT priorities at European banks, including how budgets are being allocated and the business trends driving those decisions.

The 34-page report contains 24 figures.

A is available online.

of Celent Communications' Retail Banking and Wholesale Banking and research services can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.

        

Send mail to info@celent.com with questions or comments about this Web site.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

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Michele Pace
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Europe (London)
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Table of Contents

 

Paris, France April 26, 2004

IT Spending Trends

Return to report Abstract

 

EXECUTIVE SUMMARY 3
DEFINITION 5
IT SPENDING TRENDS 8
IT PRIORITIES 10
IT BUDGET ALLOCATION 12
  Maintenance vs. New Products 12
  IT Budget Allocation by Major Banking Division 14
  IT Budget Allocation by Type of Services 15
  New Project Spending Allocation 16
COST REDUCTION 17
  Centralization of IT Operations 17
  Outsourcing 19
  Pre-Packaged Software 20
BUSINESS TRENDS 21
  Branch Renewal 21
  The Move Toward Multi-Channel Integration 24
  Development in Central and Eastern Europe 26
  Regulatory  19
CONCLUSION 38
OBJECTIVITY & METHODOLOGY 39

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