MILAN, Italy, October 15, 2002 - 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 (IDC # PF29J), illustrates the drivers and inhibitors of future STP evolution and describes selected initiatives supporting STP services and solutions. This document is available to purchase from your local IDC office or visit www.idc.com.
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IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.
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For more information, contact:
Daniele Bonfanti
+39 02 284 57 351
dbonfanti@idc.com