Financial firms in Western Europe will increase IT investment in wealth management in 2004 as they launch new initiatives after the capital market slump, according to research by market intelligence firm IDC.
According to the study, the wealth management business offers new opportunities for vendors due to a more positive market trend, with firms in Spain, Germany, and the UK providing the biggest opportunities.
IDC says investment in CRM, risk management and portfolio management systems will be a priority for financial firms over the coming year. Firms will also invest in software to comply with new regulations related to risk management, anti-money laundering and UCITS funds.
Mirko Corbetta, research analyst with IDC's European vertical markets research group, says: "We are still in the initial phase of this process and only first movers are really committed to exploiting the new opportunities arising from a clearer business environment."