|
 |
|
|
|
|
|
|
Friday June 18, 02:09
|
|
E-Payments A Focus In Banks’ Latest IT Spending
|
|
E-payments and cash management will be strong growth areas for banking technology providers, as will business intelligence, systems integration and transaction processing, according to Bank Systems Online. Industry consolidation means US banks have less choice of technology providers, which could imply price increases and less innovation in 12 to 18 months, said John O'Malley, of Harland Financial Solutions, at the firm's annual conference. Banking executives are upbeat that renewed investment in IT projects will boost revenue growth beyond 2003 levels, however, even if IT budgets need re-evaluating every quarter.
Four out of five US banks expect to achieve revenue growth greater than that in 2003, which is driving IT investment for 2004, according to a survey by InformationWeek. Seventy-one per cent of banks predicted IT spending in 2004 to exceed that in 2003, while 10 per cent expected budgetary decreases. Typically, IT budgets at US banks constitute 13.5 per cent of projected annual corporate revenues, but renewed business confidence bodes well for IT spending. US banks continue to differentiate their online presence while addressing security concerns, according to the latest Gomez Scorecard for Internet banking.
Security issues are blunting banks online initiatives such as the use of e-mail for alerting, says Gomez analyst, Chris Musto, as the rise of phishing means consumers can no longer trust e-mail that appears to originate from their bank. Banks typically rework their sites every three years or so, using other banks' sites as a benchmark, which leads Gomez to note that a bank's competitive ranking declines in the years after its rework, before that bank resumes its leadership on its next upgrade. Despite this, the banks are drawing on each others' experiences of addressing security issues, while increasing usage of their online channels.
(Banking Technology)
|
|
All billing news
|
|
|
|
|
|
|
|
|
|
 KEYWORD SEARCH |
|
|
|
|
|
SUBSCRIPTION |
|
|
|
|
|