Most financial services firms are failing to invest in new technologies this year, instead focusing on IT essentials such as compliance and security, according to a survey from LogLogic.
The poll of 82 banks, investment houses and insurance companies in North America, Emea and Asia Pacific found that 58% plan to devote budget only to essential information technology needs.
Meanwhile, only half plan to even evaluate new technologies for potential use in the future. Cloud computing in particular is still viewed with some scepticism in the industry; 34% of respondents say it is not strategic to their company and another 26% claim their firms are risk-averse to the technology.
According to one IT security manager interviewed by LogLogic: "A significant pitfall to cloud computing is the lack of control. It creates a massive security risk."
The importance of this concern is highlighted by the fact that every firm questioned cites information security as a top priority, with most admitting that their systems are regularly attacked. A quarter of respondents are subject to attacks monthly, 22% weekly and 24% daily, although another 22% say their systems do not experience attacks.
Compliance also continues to dominate the thinking of financial services firms. More than 60% of those surveyed note that they are either somewhat or moderately worried about new regulations being introduced to the industry. The majority of firms say their compliance efforts are focused primarily on Sarbanes-Oxley and Payment Card Industry Data Security Standards.
Guy Churchward, CEO, LogLogic, says: "Many industries are proceeding cautiously as we emerge from the recent economic downturn, not just financial services. The imperative to drive efficiencies and get the most out of your existing infrastructure is alive and well. Companies today are looking to maximise their IT investments - focusing on critical functions such as improving their overall security posture and meeting stringent compliance demands."