Risk push on banks’ IT agendas
(16 September 2009 – Global) IT upgrades and spending is firmly on the agenda of banks globally, with risk and regulation key drivers in the wake of the global financial crisis.
According to a joint survey by banking co-operative Swift and IBM which surveyed around 1200 bank and technology executives around the world, the twin pressures of risk and regulation are top among the factors driving transaction banks to make investments in IT.
The report reveals a strong recognition that the banks must get back to basics and refocus their emphasis on risk management.
While this should have been their primary focus all along, the report says, as the crisis amply demonstrated it slipped down the priority list – with failings in the area of liquidity risk management proving particularly calamitous.
The survey reveals that transaction banks are focused on improving risk capabilities and are braced for the impact of increased regulatory obligations. As a result, they intend to marshal IT and shared services as the foundation for ongoing success.
In order to concentrate on their competitive differentiators and free up resource to cope with new regulatory requirements, transaction banks are also looking to utilise outsourcing and collaborative solutions to maximise the efficiency, the report said.
Across transaction banking, the number of executives that are considering outsourcing some aspect of their activities has doubled to as much as 60 percent, said IBM and Swift.
But while outsourcing is on the agenda, improved risk management is one aspect of technology updates that will certainly be kept in house.
The report reveals a strong recognition that the banks must get back to basics and refocus their emphasis on risk management.
While this should have been their primary focus all along, the report says, as the crisis amply demonstrated it slipped down the priority list – with failings in the area of liquidity risk management proving particularly calamitous.
The survey reveals that transaction banks are focused on improving risk capabilities and are braced for the impact of increased regulatory obligations. As a result, they intend to marshal IT and shared services as the foundation for ongoing success.
In order to concentrate on their competitive differentiators and free up resource to cope with new regulatory requirements, transaction banks are also looking to utilise outsourcing and collaborative solutions to maximise the efficiency, the report said.
Across transaction banking, the number of executives that are considering outsourcing some aspect of their activities has doubled to as much as 60 percent, said IBM and Swift.
But while outsourcing is on the agenda, improved risk management is one aspect of technology updates that will certainly be kept in house.
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