Corporates concerned over STP rates, claims survey
Improving STP rates and examing the potential of outsourcing solutions are two of the main concerns being exhibted by corporate clients, according to Fundtech, a leading provider of financial technology software and services. The survey concludes:
All of the respondents (100%) said that their corporate clients are aware of the STP (straight through processing) rate between their back office and the bank and that 54% of them are actively working to improve this rate.
Over half of the respondents said their institution is more interested in outsourcing this year than last year, but only 13% felt the potential for outsourcing had decreased. As an example of this, of those banks that will invest in Target2 systems in 2005, 60% said they would outsource by either purchasing software or connecting with an application service provider (ASP).
Over two-thirds said that their IT budgets would grow in 2005. While 13% of banks are planning to increase their technology budget by more than 10%, 56% of executives surveyed said their bank plans to increase its technology budget by 0-10%. This is in line with TowerGroup's recent predictions of a 4.4% rise in technology spending in 2005 by the banking industry.