A study by IDC Financial Insights showed that growth in risk management spending will be faster than the total amount of investment in technology within the financial services sector.
In 2012, risk management will account for more than 15 per cent of IT spending within the industry, the report revealed.
Uncertainty over incoming regulation and compliance, the need to keep up with technological change and the desire to improve corporate governance and financial performance were among the main drivers for the increase, IDC said in its report.
Michael Versace, global risk research director at IDC Financial Insights, said: âWith this research, our clients are telling us that we have filled a previously un-met market need - and we agree.â
âAlthough our macro-economic assumptions continue to point to downward pressure on overall IT spending in financial services, in our estimation, the risk technology market is large and still growing at a good clip."
Technology solution provider Temenos recently said that the implementation of regulatory reform such as Basel III was the main reason behind the increased investment in risk management technology by global banks.
By Jim Ottewill