MILAN, Italy, and FRAMINGHAM, Mass. - October 25, 2005 - Global independent research and advisory firm Financial Insights, an IDC company, today announced the release of a new survey study providing a detailed view of vertical- specific applications in the Western European banking sector, based on Financial Insights and IDC's European Vertical Market Survey, conducted in the top 5 Western European countries (France, Germany, Italy, the United Kingdom, and Spain) during March/April 2005.
Industry-specific solutions for banks range from core banking to anti-money
laundering (AML) solutions, from credit risk management applications to branch tellers. Many of the functions performed by banks require specific solutions. For this reason, there is a strong attention to these solutions and not all have the same level of priority.
"The complex and unique nature of the banking industry will require all IT
vendors to increasingly tailor their offerings to the industry specificities," said Angela Vacca, senior research analyst for European IT Opportunity: Financial Services research. "In this context, the areas of risk management, fraud management, and core banking are attracting the strongest attention because of business issues and regulatory compliance concerns."
Survey results show that two-thirds of Western European banks are investing or have short-term plans to invest in banking-specific applications. One-third of interviewed banks will increase the level of investment over 2004. This data underlines the importance of industry-specific applications in the banking sector and shows the commitment of banks to maintaining a strong focus with respect to these applications.
An in-depth analysis of survey data highlights that regulatory compliance and fraud detection, which are very high priorities for banks, are areas in which banks are investing or are going to invest in the short term. Performance management issues are increasing in importance as well because banks need powerful tools to evaluate their performance to better address efforts and investments.
In addition, more than 65% of interviewed companies are investing in ebanking and branch automation. However, many of these investments are just the completion of past projects, and both these channels have a lower priority than previously.
This Financial Insights study, Western European Banking Sector, 2005: Industry-Specific IT Solutions Adoption and Investment Plans, by Angela Vacca (Financial Insights #FIN1645, September 2005), reports the results of a Financial Insights/IDC survey carried out among European banking executives in France, Germany, Italy, Spain, and the United Kingdom on industry-specific applications. This research analyzes investment priorities and 2005 investment plans for vertical-specific solution areas and provides insights on the buy and build strategies of Western European banks and of their evolutions.