ICT In The Financial

impacted
the Financial Services industry more than any other industry,
with many

financial firms forced to shut their doors permanently,
while others looked to government intervention and still others
were forced into consolidation. The new global paradigm has
created immense pressures on financial institutions to perform
on an ongoing and immediate basis. In order to keep up with
the demands of a globally integrated marketplace, financial
firms are increasingly turning to information and communications
technology (ICT) to drive innovation and design products and
services that are both safe and efficient for end-users.

ICT has long been a critical component to the success of the Financial Services sector. Often described as e-finance, technology in financial services refers to the accessibility of financial services through the use of electronic communications. Spurred by decades of innovation, productivity and growth, Canadian financial institutions have made Canada a global leader in the Financial Services industry, thus contributing to the transformation of Canada’s digital economy.

on the Financial Services Sector. Thus, with the
support and approval

of ICTC’s Board of Directors, ICTC undertook
an in-depth examination of the Financial Services sector in order
to better understand how ICT innovation is shaping and defining
Canadian financial services. In order to keep up with the demands
of a globally integrated marketplace, financial service providers
are increasingly turning to ICT to drive innovation and create
new business opportunities.

Harnessing the innovative capacity of ICT has the potential to
overcome the many challenges facing financial service providers.
Challenges related to cost, quality and timeliness of services,
security and regulatory compliance can all be addressed by
accelerating the adoption of ICT across all spectrums of
the financial service environment.

sphere of financial services has created
New business opportunities for

banks, investment firms and insurance
companies, despite the sharp increase in regulation following the
2008 financial crisis. In this challenging environment, financial
firms will require highly skilled ICT professionals with the skills to
adapt to new technologies and respond to the ongoing regulatory
requirements of the post-recession period.

ICTC draws in part from Census/Labour Force Survey (LFS) data
to determine the labour market profile of ICT workers within the
Financial Services sector. We begin by looking at 21 “core” ICT
occupationsi (i.e., NOCSii) employed in the Financial Services sector
(NAICSiii 52).

impacted the global
economy in many different ways, most notably in

the cuts to
infrastructure spending and job loss in various sectors. Global
ICT spending declined by three percent in 200912 and as much as
5.2% on end-user spending13 (Figure No. 1), as many large firms
were forced to lay off existing staff. Among the hardest hit were
financial service providers, with large firms such as JP Morgan Chase
announcing the elimination or redeployment of up to 3,000 ICT-
related jobs.14

Despite the economic downturn, ICT spending in banking and
investment services has increased globally. ICT spending in North
America is expected to be 2.4% higher in 2012.15 Despite the sharp
decline in spending in 2008, the Financial Services industry led
all other industries in worldwide ICT spending during the recession
(Figure No. 2). By 2013, North American banks are expected to

global Financial Services industry
is expected to place even greater emphasis

on innovation,
including new investments in systems upgrades.33 With the
regulatory landscape governing financial services continually
evolving, financial companies will be required to allocate greater
resources into ICT governance and security infrastructure.

The growing impact of ICT innovation on financial services will likely
create new skills requirements for ICT professionals looking to work
in the rapidly evolving intersection between technology and finance.
While maintenance of traditional ICT platforms will continue to
play a role, the global Financial Services industry is “realizing
the competitive advantage of modernizing their core systems
and byzantine legacy systems.”34

services is hardly new.
However, due to recent government intervention in

major financial
institutions, governments and the public are demanding more
transparency, such as increased auditing and reporting requirements.
In addition to this evolving regulatory environment, security risks
have never been higher, with fraud, identity theft and information
leaks more prevalent today than in the past. According to a
forthcoming ICTC publication, cyber threats are on the rise
and are impacting various sectors of the Canadian economy,
including financial services.

cut ICT
staffing, with one poll vii indicating that the majority

of decision
makers projected to cut ICT jobs by as much as 15%,31 financial
service providers around the world will need ICT professionals
who understand the new regulatory environment.

In this environment, ICT workers will require a blend of skills
and experience to handle the new challenges of the global economy.
According to the International Labour Office (ILO), ICT employees
working in financial services who have strong financial and business
skills are likely to fair the best in this new environment.

be defined as
either product innovation or process innovation. Product innovation
refers

to the development of new products and services, whereas
process innovation reduces production costs of existing goods.
For the purpose of this study, product and process innovation are
both understood within the context of ICT—that is, the role of
ICT in developing new products and services (product innovation)
and reducing the costs of production (process innovation).

global Financial Services industry
is expected to place even greater emphasis

on innovation,
including new investments in systems upgrades.33 With the
regulatory landscape governing financial services continually
evolving, financial companies will be required to allocate greater
resources into ICT governance and security infrastructure.