Banks urged to create ‘innovative yet risk-aware’ IT program

Financial institutions need to ensure future growth strategies embrace innovative IT and technology solutions, a research organisation has urged.

Richard De Lotto, principal research analyst at Gartner, warned banks that they need to think tactically about IT and how it is deployed.

Organisations should integrate technology with strategic plans rather than just viewing solutions as short-term, money-saving exercises, the researcher explained.

The comments follow the publication of a report by Gartner which showed that half of the banks questioned will not have a budget or program dedicated to technology in place by 2013.

Up to three-quarters of financial institutions will also have failed to create a system to identify or exploit potentially disruptive technologies within the next three years, the study revealed.

The report predicted that industry leaders will be those which follow IT market trends and discontinuities to ensure they are the most competitive.

Mr De Lotto said: “Banking and investment service providers need to make a critical shift to a more outward-facing set of objectives for IT that are risk-aware but still innovative and bold.”

“These institutions must now look beyond the fire-fighting of the current crisis towards planning for the eventual recovery and the new world that comes with it. If they don’t, they will become uncompetitive and fall behind more-forward-thinking rivals.”

Further findings from the study revealed that 90 per cent of banking initiatives already underway will need to be amended by 2013.

By Jim Ottewill