Banks To Cut Back On IT Spending

Banks To Cut Back On IT Spending

The recent £50bn liquidity injection provided by the government to banks will trigger a period of limited IT support investment across the sector until the second quarter of 2009, according to research from analyst TowerGroup.
This split means that strategic developments, such as IT support investment, will come to a standstill for recapitalised banks while other institutions will adopt short-term tactical business plans.



"This bailout is as much a pull as it is a push. The solution will change the strategic landscape of the UK finance sector and create a clear divide in business priorities for those who have and have not received funding for the foreseeable future," said TowerGroup European research director Bob McDowall.