January 25, 2010
Financial IT Spending To Increase 2.9% in 2010
Financial institutions will increase information technology spending 2.9% in 2010, after cutting budgets by 2.5% in 2009, according to research and consulting firm Celent.
The greatest growth in financial IT spending will be in Asia-Pacific, with expenditures rising 5.1% in 2010 and a cumulative average growth rate of 6.2% from 2010 to 2012. By 2012, Asian firms will spend nearly $102 billion on IT.
In North America, IT spending will reach $128.8 billion in 2012, for a CAGR of 4.4% between 2010 and 2012. IT spending in Europe will climb to $141 billion in 2012, a CAGR of 4.7% from 2010 to 2012.
Of all financial industry verticals, securities and investment firms are expected to increase their spending on IT at a faster rate, 3.4%, than any other vertical. In North America, the CAGR between 2010 and 2012 will be 6.2%. "Growth rates are starting to climb across all regions," said Jacob Jegher, senior analyst with Celent's banking group.
Advisers Expect 2010 To Be a Much Better Year
Despite the fact investors are more conservative after getting slammed by the recession, advisers and their clients are optimistic about the year ahead, with advisers looking to grow their business and improve their use of technology.
An SEI Advisor Network poll reveals that over half of investors have moved back into the markets, although risk and avoidance are now the overarching priorities. Forty-five percent of advisers said clients are "not as risk tolerant as originally thought," while 29% said clients learned they "can handle market volatility if they focus on long-term goals."
The majority of advisers communicated with clients more frequently last year, according to the poll, which surveyed 442 advisers this month and last month.
"Advisers are looking for new ways to make their business more secure and more successful," said Stephen Onofrio, head of sales and service, SEI Advisor Network. For this year, most advisers hope to become more client-focused, grow their book of business and improve technology.
BrightScope Gives 401(k) Investors Free Peek at Fees
BrightScope is offering a Personal 401(k) Fee Report so investors can see the actual fees on 30,000 plans, how they compare to other funds and how much the difference would cost them in fees up until their retirement.