The US Securities Industry in 2004: IT Spending Projections & Trends

January 30, 2004

Abstract

Boston, MA, USA  January 30, 2004

US Securities Industry in 2004: IT Spending Projections & Key IT Trends

Celent anticipates that for the first time in two years annual IT spending will increase in the securities industry, reaching US$26.1 billion by the end of 2004.

After two years of dismal market conditions and stagnant IT spending, the U.S. securities industry is ready for a change. In a new report, "US Securities Industry in 2004: IT Spending Projections & Key IT Trends," Celent examines the market conditions shaping the future of the securities industry and provides IT spending projections for 2004 and beyond.

According to Sang Lee, manager of Celent痴 securities and investments practice, the positive outlook in the equities markets, changes in the retail brokerage industry, and pressures in investment banking have opened the doors to spending. Lee adds, "While we might not return to the spending nirvana of the late 1990s, 2004 is important because it looks to be the year in which wallets begin to open again."

Celent takes a cautiously optimistic view of the overall performance of the securities industry in 2004. Industry trends currently revolve around cost reduction, operational efficiency (straight-through processing), and compliance and risk management.

This report provides analysis and views on those issues that are vital to understanding the current and future direction of the industry from a technology and business standpoint.

A is available online.

of Celent Communications' Retail Securities & Investments and Institutional Securities & Investments 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.

        

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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

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

Boston, MA, USA January 30, 2004

US Securities Industry 2004

Return to report Abstract

 

EXECUTIVE SUMMARY 3
INTRODUCTION 4
MARKET OVERVIEW 6
US SECURITIES INDUSTRY IT SPENDING 10
  Definition of IT Spending 10
  Overall Industry Spending Projections 11
  Internal vs. External 13
  Maintenance vs. New Development 15
  IT Spending by Line of Business 15
  Strategic Asset Management Solutions 17
  IT Spending by Operation 16
KEY IT TRENDS IN 2004 18
OBJECTIVITY & METHODOLOGY 22

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