Software AG survey: the future's bright for financial services IT
- Business leaders surveyed in a nationwide study of German companies report that business flexibility supported by IT is a key concern
- Financial services companies lead other sectors in Service-Oriented Architecture (SOA) and Business Process Management (BPM) adoption.
- Companies look to SOA and BPM to leverage existing IT assets in a challenging global economy
- Financial institutions will emerge from the recession stronger not weaker
Darmstadt, Germany, 3/12/2009
Software AG, a global leader in business infrastructure software, announced the results of a nationwide study of German corporations. The study revealed that financial services companies are significantly ahead of other industries in their adoption of Service-Oriented Architecture (SOA) and Business Process Management (BPM). Additionally, banks and insurers lead other sectors in their use of SOA and BPM to achieve flexibility, agility, and transparency and to drive overall business growth. Despite enduring massive turmoil and organizational change, including forced mergers, a scramble for transparency and major cost-cutting, the financial services industry will bounce back quicker than most.
The Software AG study surveyed senior executives in German companies with at least €50 million in revenue. In the study, 64% of companies in the financial services sector viewed IT as a strategic resource, versus just 36% among all industries. Additionally, the level of adoption of service-oriented architecture (SOA) by banks and insurers is more than double that of the average among other industries.
“More than any other sector, financial services see IT as having a strategic role,” said Dr. Peter Kürpick, Chief Product Officer of Software AG. “Rather than view IT as simply a cost of doing business, banks and insurers value it as an enabler of business growth.”
IT security is of highest importance to financial services companies; however, the study also revealed that IT is not solely a security topic. A full 80% of banks and insurers reported that the creation of a more flexible IT landscape is important or very important. The biggest driver behind implementing a flexible IT infrastructure was the need to gain greater transparency into IT assets and business processes.
To achieve this flexibility, the overwhelming majority of companies—93%—reported that they are looking to enabling technologies, such as SOA and BPM, to leverage existing IT investments, with only 7% of respondents opting for “rip and replace” solutions. More than 56% of financial services companies already work with BPM, and 32% already have complete process management, far ahead of other sectors.
“Banks and insurers realize the need for greater transparency and agility, but at the same time they are dealing with the financial pressures of a challenging global economy,” said Dr. Kürpick. “The high interest in flexibility and low interest in system replacement shows that companies are making smart, ROI-focused decisions.”
The news comes as laws are extending existing legislation such as Sarbanes-Oxley, Basel II and MiFID, which will be geared towards ensuring reporting, trading and data security continue to be at the heart of financial strategy.
"As the economy turns, there is already no room left for error. Every process and system must be watertight to ensure nothing goes unaccounted for, and fraud and operational, credit, and market risks are reduced to a minimum," concluded Dr. Kürpick.
The survey also revealed the value and importance of an incremental and ordered approach to SOA adoption. 68% of financial services companies already have an SOA roadmap, either for companywide SOA deployment or for the SOA-enablement of key applications. IT governance is important or very important for 50% of companies.
“At the same time that we have seen SOA evolve from tactical deployments to strategic, enterprise initiatives, we have also witnessed companies coming to understand the need for SOA governance to effectively control SOA deployment,” said Dr. Kürpick. “The fact that half of the respondents in financial services now understand the importance of governance is encouraging.”
Software AG | Uhlandstraße 12 | 64297 Darmstadt | Germany
Software AG is the world’s largest independent provider of Business Infrastructure Software. Our 4,000 global enterprise customers achieve business results faster by modernizing, integrating and automating their IT systems and processes. As a result, they rapidly build measurable business value and meet changing business demands. Based on our solutions, organizations are able to liberate and govern their data, systems, applications, processes and services – achieving new levels of business flexibility.
Our leading product portfolio includes solutions for high performance data management, developing and modernizing applications, enabling service-oriented architecture, and improving business processes. By combining our technology with industry expertise and best practices experience, our customers improve and differentiate their businesses – faster.
Software AG has almost 40 years of global IT experience and over 3,600 employees serving customers in 70 countries. The company is headquartered in Germany and listed on the Frankfurt Stock Exchange (TecDAX, ISIN DE 0003304002 / SOW). Software AG posted total revenues of €621 million in 2007.
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Contact: Software AG Paul Hughes Director Media Relations Uhlandstrasse 12 64297 Darmstadt Germany Tel: +49 6151 92-1787 Fax: +49 6151 92-1623 press@softwareag.com http://www.softwareag.com |
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or: Software AG Norbert Eder Vice President Corporate Communications Uhlandstrasse 12 64297 Darmstadt Germany Tel: +49 6151 92-1146 Fax: +49 6151 92-1623 norbert.eder@softwareag.com http://www.softwareag.com |
