Brazil banks increase tech spend despite downturn

Bnamericas Published: Wednesday, April 15, 2015
Brazil banks increase tech spend despite downturn

Brazilian banks are increasing investment in technology and IT despite the economic downturn the country is going through – but they are spending more efficiently, local banking association Febrabansaid.

Overall, local banks spent 21.5bn reais (US$7bn) on technology last year, up from 20.8bn reais in 2013. The figures are part of Febraban's 2014 banking technology study released earlier this week.

Of the total investment, hardware accounted for 43% (for 2010-14 investment growth of 6%), software 39% (+16%) and telecom 17% (+2%).

According to Gustavo Fosse, director of banking technology at Febraban and IT manager at Banco do Brasil, the rise in the amount banks spent on hardware last year was mostly due to increased expenditure on storage and data center services. But software continues to be the "apple of the sector's eye" in terms of technology investment, he said.

Questioned by journalists, Fosse said that 10%, or 2.15bn reais, of the total IT spend went on security.

IT spending by Brazilian financial institutions accounted for the largest share, or 18%, of the entire US$59bn all industries in the country invested in IT last year, Febraban said.

Questioned by BNamericas about the average proportion of bank budgets that are allocated for IT, Fosse said Febraban did not have those figures.

Globally, financial institutions channeled some US$351bn into IT in 2014, the association said.

To continue reading, subscribe to BNamericas to get all the information in this article and access to related news items and reports.

Subscribe to BNamericas and gain access to thousands of project profiles, key contacts and news.

Other projects in: ICT (Brazil)

Get critical information about thousands of ICT projects in Latin America: what stages they're in, capex, related companies, contacts and more.

Other companies in: ICT (Brazil)

Get critical information about thousands of ICT companies in Latin America: their projects, contacts, shareholders, related news and more.

  • Company: Hispamar Satélites S.A.  (Hispamar Satélites)
  • Hispamar Satélites (Hispamar) is located in Rio de Janeiro, Brazil and is a subsidiary of Hispasat Group, a Spanish telecommunication satellite operator. Hispamar was founded in...
  • Company: Sky Brasil Serviços Ltda.  (Sky Brasil)
  • Sky Brasil Serviços Ltda. (Sky Brasil) is a Brazilian satellite pay-TV provider that uses Ku band to bring digital content to more than 5.2mn residential consumers in Brazil. Th...