For the first time in two years, IT spending in the US securities industry will increase in 2004. According to a new report from consultants Celent Communications, total outlay will reach US$26.1 billion by the end of 200 7. Merrill Lynch ($ 2.7 billion) will lead the pack, followed by Fidelity Brokerage ($ 2.3 billion) and JP Morgan ($ 1.99 billion).
The Celent report, entitled US Securities Industry in 2004: IT Spending Projections & Key IT Trends, Celent examines the market conditions shaping the future of the securities industry and provides Celent’s projections for IT spending in 2004 and beyond. This report highlights key trends affecting how and where dollars are likely to be spent by securities firms.
According to Sang Lee, manager of Celent’s securities and investments practice, the positive outlook in the equities markets, changes in the retail brokerage industry, and pressures in investment banking have opened the doors to spending. “While we might not return to the spending nirvana of the late 1990s, 2004 is important because it looks to be the year in which wallets begin to open again,” she says
Celent takes a cautiously optimistic view of the overall performance of the securities industry in 2004. Industry trends currently revolve around cost reduction, operational efficiency (straight-through processing), and compliance and risk management.
This report provides analysis and views on those issues that are vital to understanding the current and future