2009 Trends to Watch - Retail Banking Technology

DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
ANALYSIS 2
The retail banking landscape is radically different compared to twelve months ago 2
The intervention of governments and central banks will continue in 2009 3
The outlook for the retail banking industry in 2009 4
The impact of the financial crisis on IT spending 5
Budgets are under strain, resulting in the cancellation of non-essential IT initiatives 5
Carefully targeted investments will be made, based on watertight business cases with rapid payback 6
Understanding the specific business areas where retail banks will be investing in during 2009 6
Understanding the specific technology areas where retail banks will be investing in during 2009 8
Developing the key contact channels 9
Banks will follow several different strategies when it comes to card administration systems 10
ACTIONS 11
Impact on players in the retail banking sector 11
Banks should brace themselves for new regulatory policies that will necessitate changes to IT systems 11
Banks should consider additional outsourcing opportunities where appropriate 11
The use Software as a Service is an option, but it could be a case of too far, too soon for many banks 12
Recommendations for those selling into the retail banking sector 12
Niche vendors should consider aligning themselves with larger infrastructure providers or outsourcers 13
Emerging markets will grow, but won't offer sanctuary to difficulties in North America and Western Europe 13
APPENDIX 14
Methodology 14
Further reading 14
Ask the analyst 14
Datamonitor consulting 14
Disclaimer 14
List of Figures
Figure 1: Gauging the impact of the financial crisis on IT investment in 2008 and 2009 5
Figure 2: Understanding the business area priorities for IT investment in 2009 7
Figure 3: Branch strategies in 21st century retail banking 7
Figure 4: Understanding the technology area priorities for IT investment in 2009 8
Figure 5: Understanding the channel investment priorities of retail banks for 2009 9
Figure 6: Understanding the card administration systems priorities of retail banks in 2009 10