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http://www.finextra.com/fullstory.asp?id=19752

Financial crisis to wipe $40bn from retail bank IT budgets – Datamonitor
The global banking technology market will decline by almost two per cent in 2009, and wipe billions of dollars off bank IT budgets over the next five years, according to a report by market analyst Datamonitor

The report ‘Impact of Financial Crisis on Technology Spending in Banking’, says the cutback in spending will be concentrated in European and North American markets, led by the UK, where banking technology spend will have the greatest fall, declining by almost seven per cent.

Datamonitor expects overall technology growth to remain depressed compared to pre-crisis forecasts up to 2012, removing over $40bn from bank IT budgets over the next five years.

Interesting, I wonder though what this cutback represents and if we’re including the recent mergers and acquistions. There might be a shift from investment to more keeping everything online, but for those organizations that have recently made organizational changes, we still need budget to realize those savings we read about. The “bank declares £30 million annually through savings”, that requires de-duplication of data centers, servers and applications.

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