IBM

Wall Street IT spending to rise

Jim Kim — Sun, 20 Jul 2008 08:28:03 -0400

The conventional wisdom as of late has been that IT budgets would take a hit across Wall Street, what with the credit crunch and all. But that may not be the case at more than a few companies, according to a new survey from IBM and Securities Industry and Financial Markets Association (SIFMA). Asked to compare 2007 IT budgets with 2008 budgets, one-third of respondents suggested their 2008 budgets were higher. Of course, that means two-thirds suggest their 2008 budgets will be at the same level or lower. As for 2009, the majority of IT budgets were expected to remain at the same level or increase, easing declines from 2008. One surprise: small firms seem to be most aggressive about spending, notes Wall Street & Technology. Risk management and compliance will drive much of this increase in spending, especially in areas exposed by the credit crunch.

For more:
- here's the Wall Street & Technology article

Data governance and the subprime crisis

Jim Kim — Fri, 11 Jul 2008 08:04:35 -0400

To some people "data governance" may come across like just another buzzword. But IBM is predicting that it will become increasingly important over the next few years, as more companies and regulatory organizations aim to boost the quality of data that just might lead to less uncertainty in volatile times. Unsurprisingly, IBM's Data Governance Council says the impact of the movement likely will be felt first in the financial services industry. IBM predicts that more companies may soon be forced to document their data governance practices, that new accounting and reporting standards will emerge, that the value of data will be considered a balance sheet asset, and that the quality of data will become a technical reporting metric and key performance indicator. All of this may help to calculate various risk metrics on the fly that are comparable across the industry. To me it sounds like an extension of Sarbanes-Oxley and XBRL to whole new realms of company data. All in all, the industry would be best served by adopting such practices voluntarily.

For more:
- here's the release
- here's an article from Securities Industry News

Related Article:
Buzzword alert: Data governance

What will technology mean for bank hours?

Jim Kim — Wed, 14 May 2008 08:11:34 -0400

We've discussed how fancy "telepresence" studios and kiosks might someday have an impact on retail banking and brokerage. Another step in that direction comes from IBM, which has developed a fancy new kiosk designed for bank branches. It allows customers to interact with a virtual teller in savvy ways. The new system, according to Finextra, was developed by the IBM Bari research laboratory in Italy. The goal is for the kiosks to support branch staff, but you can imagine some more aggressive applications. U.S. Banker notes that longer branch hours are correlated with higher deposit growth. The move toward more virtual services would play to banks that want to offer ultra-convenience as a marketing tool. At some point, do you need real live people on site? Maybe not.

For more:
- here's the Finextra article on IBM's virtual teller
- here's the U.S. Banker article

Bank patents war heats up

Mon, 28 Apr 2008 06:59:54 -0400

Software and biotech--and increasingly financial services--companies know what the patent wars are all about. Increasingly, in this era of low-cost production, the higher-level value add in any business boils down to the intangibles, the knowledge. So you have to patent the hell out of everything you do. And when it comes time to really go to war with another company, you search your patents and sue your competitor for all kinds of infringement, real or not. IBM was known for this. Banks these days have no choice but to play that game (as they should). Some will argue this is a gross misapplication of the patent system, and that processes should not be patented. These are old questions to be sure. But banks really don't have a say. There is too much at stake in terms of royalties and competitive advantage.

For more:
- here's an article from Bank Systems & Technology

ALSO NOTED: Are you ready for voice biometrics for online banking; and much more...

Mon, 21 Apr 2008 06:59:50 -0400

Company News:
> Thomson Reuters ramps up at a tough time. Article
> BATS vs. NYSE on fees. Article
> Sales to financial services powers IBM's 1Q results. Article
> Bidders lining up for Dell Financial Services. Article

Industry News:
> Massive growth in electronic bond trading. Article
> Are you ready for voice biometrics for online banking? Article
> Sellside's server refresh rate accelerates. Article
> In Europe, credit crisis hits financial services IT vendors hard. Article

And Finally... Are Segways a good bank marketing tool? Item