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Spending
on STP and Front-to-Back End Integration Delayed by Financial Institutions
in Western Europe
Although Straight-Through-Processing (STP) and front-to-back end
integration are among the highest IT priorities of Western European
financial institutions, current market and economic conditions are
limiting investments in these projects.
According to IDC, several major inhibitors, such as project complexity
and the size of the investments required, are inhibiting the major
drivers that have been leading IT spending in this area.
"Financial companies are less eager to become involved in
long and difficult projects, and as in other areas, are delaying
all investments that do not show a measurable payback. Nevertheless,
all major initiatives set up recently to reach greater interoperability
are continuing," said Daniele Bonfanti, Program Manager with
IDC's European Vertical Markets group.
The launch of ISO 15022 as a new messaging standard and the commitment
of SWIFT to create a common repository for all the financial XML
vocabularies is helping to create widely accepted standards facilitating
these processes. In addition, Web services have received major attention
in the financial services industry but these technologies are still
in their infancy and do not represent a viable solution for STP
and front-to-back end integration in the short term.
In general, IDC expects that financial institutions will follow
a pragmatic approach to internal and external integration, investing
mainly in some specific solutions enhancing integration in back-office
processes.
IDC's study, Front-to-Back End Integration and STP in the European
Financial Services Sector, illustrates the drivers and inhibitors
of future STP evolution and describes selected initiatives supporting
STP services and solutions.
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