Magazine : Archives : 2nd Quarter 2003

Focusing on Strategic Technology Investments

Investing in bank technology is a high-stakes game. In 2003, U.S. commercial banks are expected to spend an estimated $33.8 billion on technology projects, according to a new report from the Tower Group, Needham, Massachusetts. But if these numbers make it sound like the technology gurus have been handed blank checks—like proverbial kids in the candy shop—think again. About $30.1 billion has been earmarked for maintenance of existing technologies, such as branch automation systems and the "big iron" machines that run many back offices. The remaining dollars—just under $4 billion—will go for "strategic" initiatives—those that promise to improve business processes...