Impact of the Financial Crisis on Banking (Strategic Focus)

Introduction

The fallout of the financial crisis has driven a dramatic shift in operating income and profitability outlook for the banking sector across the globe. This will have a significant impact on bank technology spending through to 2013, however, the magnitude and timing of impact will vary by region and sector. This reports provides a quantitative and qualitative assessment of the crisis' implications.

Scope

*Covers technology spending implications across North America, Western Europe, Central & Eastern Europe and Asia Pacific regions

*Explores impact of financial crisis on both retail and corporate banking

*Cover market impact on business strategies & priorities, affect on technology spending and priorities and implications of crisis for vendors

Highlights

Global retail and corporate banking technology spend will decline -2.0% in 2009. This will be lead by the North American and West European markets, which will experience stronger IT spend contraction of -4.1% and -3.9% respectively

Despite slowdown in sales activity, as the customer funding gap impedes new lending, banks in most regions will maintain IT investment on the branch. This will be driven by a focus on productivity improvements, as banks seek broader business cost synergies and savings

Recent M&A driven by the financial crisis will create a short-term IT opportunity for vendors, increasing baseline spend in 2009. However, drive for IT synergies will lead to a negative overall IT spending affect in US retail banking sector by 2011

Reasons to Purchase

*Quantitative assessment of impact of financial crisis on IT spending across region, sector and technology type

*Provides analysis of both business and IT impact of financial crisis on banking objectives, investment priorities and challenges

*Contains primary banking executive opinion from end 2008 on fall-out of financial crisis and plans for 2009