Banks throughout the world, and the vendors that provide products and IT services, are reeling from the crisis that has gripped financial markets and the economy. Most banks are cutting IT spending while they regroup to consider their strategies for 2009 and beyond.
The impact of this financial upheaval on banks has been greater than most observers expected and trust of banks has been eroded to a degree that few could have foreseen. The brokerage segment, which accounts for nearly a quarter of financial services IT spending, will be hit the hardest, followed by the banking segment, which accounts for nearly half of global financial services spending. Gartner believes the slowdown in IT spending by financial institutions will persist through 2009 and likely linger for 12 to 18 additional months.