IPC’s annual survey of financial executives at the FIA Futures and Options Expo in Chicago found for the second year in a row that respondents plan to increase their technology spend over the next year to realize cost efficiencies, gain a competitive advantage and manage compliance. The survey found the top challenges financial firms see in 2017 are:
- implementing the right technology infrastructure to drive business
- risk management
- data analytics and reporting
- entering new geographies
Two-thirds of respondents expect to increase technology spending in 2017; of those, more than 85 percent of C-suite-level respondents indicated the same.
Among the top reasons [financial firms] plan to increase their technology spend are to:
- realize cost efficiencies (37%)
- gain a competitive advantage (23%)
- manage compliance requirements (16%)
- replace legacy systems (14%)
The survey showed that compliance with regulatory requirements is driving firms to make investments in managed services (41 percent), network infrastructure (37 percent), electronic connectivity (33 percent) and compliance oversight (25 percent).
Nearly 60 percent of those surveyed intend to deploy hosted solutions to support their technology infrastructure versus 46 percent of respondents to the survey in 2015 and more than 54 percent are currently implementing cloud-based services versus 45 percent in 2015.
“Our survey reaffirms that as technology spending continues to grow, firms need expertise, guidance and innovative end-to-end solutions now more than ever,” said Michael Speranza, Senior Vice President, Corporate Strategy, M&A and Marketing, IPC. “At IPC, we are working closely with financial markets companies making moves to minimize infrastructure management and empowering them with the cost efficiencies and compliance oversight benefits provided by our cloud-based platforms and services.”
The survey was conducted in-person at the 2016 FIA Futures and Options Expo on October 19 and 20, 2016. In total, 239 conference attendees were interviewed. Download the entire e-book report here.