*NEW RESEARCH* UK Financial Markets SITS Trends and Forecasts

A broad-based technology refresh is underway across UK Financial Markets with much of the focus of investment having shifted from "running the business" to "changing the business". This is especially true within capital markets where AI, machine learning, proprietary algorithms, and automation are all increasingly influencing IT decision making.

However, following a period of strong and sustained increases, the rate of growth in SITS spend within UK Financial Markets slowed sharply in 2023 as investment firms tightened their belts in the face of large outflows driven by high-interest rates. In real terms (adjusted for the effect of inflation), expenditure declined by 3.3% during 2023.

The recent change of government and increased global tensions, coupled with further economic uncertainty, has seen the sector remain cautious about additional spend during 2024. In light of this, the headline rate of increase for SITS expenditure will dip further, despite some improvements in the overall economic climate. However, more consistent growth will start to take hold in 2025, with modernisation remaining a priority.

Subscribers to FinancialServicesViews can learn more by downloading UK Financial Markets SITS Trends and Forecasts 2024. If you do not currently have access to this new research but would like to read it or any other of our material, please contact Belinda Tewson to learn more.

Posted by Jon C Davies at '08:42' - Tagged: CapitalMarkets   financialmarkets   financial+services