Spending for Security and Core Systems A Bright Spot in Economic Slowdown.

Publication: Electronic Payments Week

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Economic cycles are immutable. Since investment in computer and payment systems tracks an economy's performance, we can expect a slowdown in the next few years as the normal expansion of the past several years slides into a normal slowdown, says Andrew Bartels, senior banking analyst at Forrester Research.

There's one exception, though. Because of political pressures, spending will rise to deal with security, fraud, and the data warehouses and new core systems platforms needed to support them. Since those platforms are also much of the payments platforms, this new spending will give those departments both greater capabilities, and larger staffs and the money to run them, to the extent that bigger budgets equal internal political power.

"They will have to make those investments, but it's going to squeeze out other things," says Bartels. "If a...

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