Investment Banks are at an interesting cross-road when it comes to their technology investments. Over the last few years, the investment banks cut down their IT spends while the demands from the IT organization continued to increase. Over the last few years, the IT organization was in a ‘React’ mode; responding to the budget cuts by slowing down new programs and by diverting IT spend to ‘mandatory programs’ like Dodd Frank, EMIR, FATCA etc.
“This, however, is not enough to bring a change in how ‘technology gets consumed’ by the banks and bring in efficiency. There is a need to ‘Reorder’ or ‘Refresh’ technology investments and the IT departments in these banks are now starting to think differently,” says Vinay Jhari, Vice President at Sapient Global Markets, a division of Sapient and a leading provider of services to today’s evolving financial and commodity markets.
The initiatives that Investment banks are undertaking to reorder technology investments are rationalization of their IT Application footprint, focusing on Wealth Management, investing in ‘off the shelf’ products as opposed to customized applications and rationalizing ‘technology investments’ in the compliance and regulatory space.
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