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One in eight U.S. bank IT vendors will fall victim to a long-term drop in bank technology spending, Financial Insights predicts.
The financial crisis will take a hard toll on bank IT vendors, according to Financial Insights. As U.S. banks cut overall technology spending, 12 percent of today's top 100 bank IT vendors will not survive the year, the research and advisory firm predicts.
A higher percentage of vendors not in the top 100 "are even more likely to fail," notes Jeanne Capachin, research VP for Financial Insights' banking and insurance practices, who spoke with BS&T in a follow-up interview to the Framingham, Mass.-based firm's Webcast about its top 10 technology predictions for 2009 (see related table, below). In addition, she says, tech spending won't return to 2008 levels until 2012.
Suggesting that tech spending in the banking industry may never have experienced a year-over-year decline before, Capachin adds, "There hasn't been anything like this, such a big compression in the industry." Even upheavals such as the dot-com collapse...