Wealth management IT spend to reach $3.7bn by end of 2010

The amount of investment in wealth management technology is to rise to $3.7 billion by the end of 2010, a new study has predicted.

According to the report from Celent, the figure will be five per cent higher than the total invested during 2009.

Technology budgets at financial institutions are expected to either remain the same or grow with increases anticipated to be as much as 20 per cent for some organisations, the study showed.

Front and back office solutions, including self-service, advisor platforms and integration, will be among the main areas of investment.

Isabella Fonseca, senior analyst and co-author of the report, said: “Although wealth management projects are at different stages globally, firms of all sizes are re-evaluating their wealth management infrastructure to fix their immediate needs.

“We expect the majority of the spending to be allocated at the front office, followed by the back office."

Arin Ray, co-author of the study, added: “Projects that were put on hold in 2008-2009 will likely restart in 2010.”

The findings were gained following interviews with 46 financial institutions.