Just 33 percent of IT budgets at banks are spent on innovative and transformative projects, according to a new CSC survey.
The finding that 67 percent of IT budgets at banks are spent merely on maintaining existing systems comes in spite of responses showing that financiers believe there are significant possibilities for IT spending.
Almost half of respondents from a global survey of senior IT professionals believe the industry is ignoring opportunities for new and expanded network-centric services.
In addition, 32 percent see possibilities for utilities that will aid with compliance requirements in the financial sector, which have increased since the 2008 crash. 35 percent already have a utility that serves all areas of the organisation.
However, infrastructure silos, cultural and development issues and establishment costs are considered the most prominent barriers to progress by 60 percent, 54 percent and 46 percent of respondents respectively.
"The results confirm the challenges banks are facing today, particularly around improving efficiency," said Mike Steinharter, VP, Banking & Capital Markets, CSC. "Capital requirements have become more stringent, and the regulatory burden is increasing costs across all areas of financial institutions, not least IT budgets.
"As such, banks need to find a solution that brings increased efficiencies to maintenance and compliance activities in order to reallocate budget to projects that can create business value."
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