The financial services sector is gearing up to increase spending on e-commerce and customer relationship management (CRM) solutions significantly, according to an Ernst & Young report released yesterday.
Based on the results of a survey of 125 companies in 20 countries, Ernst & Young reports that the sector's spending on CRM increased by 31 per cent this year, and will grow by 34 per cent in 2000.
And e-commerce initiatives will consume 14 per cent of technology budgets globally in 2000, an increase of 4 per cent on 1999, according to survey results.
The survey revealed that financial services organisations view the biggest challenges in implementing CRM strategies as accessing relevant customer information, internal and organisational issues, and a lack of integrated delivery channels.
Meanwhile, survey respondents cited security concerns, viability of business case, competition and customer acceptance as the greatest concerns of e-commerce initiatives.