Financial firms have cut technology spending in the past two years as they struggled to stay afloat amid the worst financial storm in 60 years, but some areas of financial IT flourished. According to US-based consultancy TowerGroup, total IT spending by European financial firms fell by roughly 14% between 2007 and 2009, to $31.6bn (€21.2bn) from $36.9bn. Spending is likely to increase 4% by 2011, TowerGroup said.

Bob McDowall, European research director at TowerGroup, said: "In Europe, the global financial crisis has drastically reduced revenues and, in most cases, obliterated profitability of securities firms since the middle of 2008. We have seen financial institutions act precipitously by forcing cost reductions as high as 20% across their enterprises as a blanket response to the financial crisis. Any strategic projects remain in the conceptual stage and in abeyance."