So, for all those readers out there who have to work with banks and other financial services companies I recommend you get hold of a copy of this weeks Economist and read “Silo but deadly.” This article lends some weight to those stories I hear in pubs, at conferences and during training courses.
- Financial services companies are estimated to spend $503bn on IT this year, thats more than Governments, more than manufacturing and more than any other sector
- The chief risk officer at Deutsche Bank says: “Banks are essentially technology firms”
- SOA architecture is a problem, that’s Spreadsheet Oriented Architecture
- Data quality is a recognised problem
Personally, I think one of the reasons why banks and other financial companies have such poor IT goes back to that quote above: Banks are technology firms but they don’t view themselves that way. As a result the way they don’t necessarily take the right approach to people or projects, and they don’t take the right short-term v. long-term view and so on.
Lest we get too negative about our industry you might also want to read this recent survey from McKinsey which suggests IT isn’t doing such a bad job, and outside the IT department corporations are pretty happy with IT on the whole.