A number of major high street banks hit the media headlines recently with stories about service disruptions and system failures. These incidents exposed the weaknesses in the IT infrastructure in Britain’s top high street banks. One of the major reasons for these shortcomings is the systematic underinvestment in IT that has plagued the banking sector for years. With regulators and market pressures forcing banks to cut down costs, whilst trying to comply with an increasing number of regulations, it’s not surprising that IT innovation has been pushed back on the list of priorities of financial organisations. To add further to the dilemma banks face regarding investment in new systems, the majority of their current IT budgets are used in just keeping the existing systems operational.
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