The amount of capital invested by financial firms in technology is expected to grow during next year, a new report has revealed.
A study by Ovum predicted that the technology spend in 2011 will be up by 4.5 per cent for firms working within the financial services industry.
The increase follows a 0.3 per cent rise this year and a decline of 4.2 per cent in the amounts set aside for technology budgets in 2009.
Businesses are looking to invest in technology due to changes in compliance regulations and a need to boost performance, the study showed.
Daniel Mayo, Ovum analyst and author of the new report, said: “The financial markets sector as a whole will be volatile in 2011, but this will not be detrimental to IT spending and will provide significant opportunities for vendors.
“Businesses will be looking for IT systems that ensure their front offices are performing as well as they can, while they will want to make their back offices more automated.”
He added that although key centres of technology growth are London and New York, the Asia-Pacific region will continue to increase in importance for the sector.
Technological investment by financial firms will continue to be driven towards business centres in this territory, Mr Mayo concluded.
By Jim Ottewill