Banks using safe IT strategy

13:54 15th September 2008

European banks are using IT to retain their market share, rather than help them grow their business in the future, new research from SAP has revealed.

The report, which surveyed banks, external industry observers, economists and academics for their views on the future of banking, concludes that they are failing to invest in technologies that will help them win new customer business.

Only 19 per cent of the banks surveyed said that technology could help them succeed, despite these firms having IT infrastructures that are expensive to maintain.

"The percentage of IT spending that is allocated towards innovative projects has all but dried up in the banking sector, said Ralph Silva, analyst at Towergroup.

"The UK banks for example are very knowledgeable about Web 2.0 but are very poor at implementing it," he added.

Last month, the recruitment firm Harvey Nash, suggested that IT professionals are invaluable during a financial downturn if they understand how technology supports business.

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