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Market Reach and Channel Partnerships Key to Telecom Providers' Growth in the Financial Services Vertical

Posted on: Wednesday, 26 July 2006, 09:00 CDT

PALO ALTO, Calif., July 26 /PRNewswire/ -- The growing need for operational efficiency and business continuity in the financial services sector coupled with regulatory pressures are likely to stimulate the growth of the telecommunications services market. Telecom providers with greater market coverage and strong product portfolios will benefit the most from these opportunities.

Frost & Sullivan reveals that the telecom spending in the financial services sector reached $10.5 billion in 2005 and estimates this to reach $11.8 billion in 2010.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis, Telecom Spending Trends in the Financial Services Sector Outlook, then send an e-mail to Mireya Castilla, Corporate Communications, at mireya.castilla@frost.com with your full name, company name, title, telephone number, e-mail address, city, state and country. We will send you the overview by e-mail upon receipt of the above information.

The rising popularity of various online financial services among customers is compelling banks, securities firms, and other financial institutions to evolve new products and services.

"As these companies continue to expand their services and offerings across international borders, data security and network redundancy become imperative," states Frost & Sullivan Industry Analyst Imran Khan. "In order to achieve this, financial services firms are increasingly adopting and implementing advanced information technology products and telecom services."

Moreover, numerous regulatory changes affect corporate governance and operational activities of various financial firms since these regulations necessitate vital investments in technology spending.

"For instance, the Patriot Act requires financial institutions to track payments as well as receipts and make them available to various law enforcement agencies," explains Khan. "In order to comply with this requirement, banks are changing their privacy policies and implementing systems that help in re-aligning operations to accommodate the regulatory compliance needs."

These growing regulatory complexities will improve the sales of telecom and IT solutions.

Currently, telecom vendors provide a variety of solutions such as network security, storage, wide area network (WAN), as well as contact center services including toll-free, interactive voice response (IVR), and speech-enabled call processing to cater to the growing technology needs of financial institutions.

However, since this sector is highly fragmented and has diverse technology requirements, it generates considerable demand for specific, customized solutions. In addition, the increasing use of in-house applications and stiff competition among vendors further impact telecom services providers' ability to garner greater share of the market.

Telecom vendors can benefit significantly by initiating product development activities that help meet the unique demands of the financial services sector. Continuing investments in marketing activities can assist vendors in gaining a competitive edge in the market.

"Allocating substantial time and financial resources for channel development activities is likely to aid telecom services providers in garnering extra sales revenues," notes Khan. "This trend will gain significance as telecom carriers often depend on systems integrators and hardware vendors to reach out to various financial firms."

Developing strategic partnerships with other established IT providers can also enable telecom vendors to improve brand visibility within the financial services sector.

Telecom Spending Trends in the Financial Services Sector is part of the Communications Services subscription, which also includes research in the following markets: managed telecom services, enterprise product penetration as well as spending trends, enterprise voice services markets, and small business telecom services trends. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.

Telecom Spending Trends in the Financial Services Sector F553-63 Contact: Mireya Castilla Corporate Communications - North America P: 210.247.3830 F: 210.348.1003 E: mireya.castilla@frost.com Srividhya Parthasarathy Corporate Communications - Europe P: + 91 44 42044668 E: sparthasarathy@frost.com Sarah Lourdes Corporate Communications - Asia Pacific P: +603 6204 5878 F: +603 6201 7402 E: sarah.lourdes@frost.com Sharmin Jassal Corporate Communications - Australia P: +61 2 8247 8900 F: +61 2 9252 8066 E: sharmin.jassal@frost.com http://www.frost.com/

Keywords for this press release: telecom spending, financial services sector, U.S., telecommunications services, data security, network redundancy, information technology, Patriot Act, wide area network, WAN, contact center services, toll-free, interactive voice response, IVR, speech-enabled call processing, systems integrators, hardware vendors, research, information, market, trends, technology, service, forecast, market share

Frost & Sullivan

CONTACT: Mireya Castilla, Corporate Communications - North America,+1-210-247-3830, or fax, +1-210-348-1003, or mireya.castilla@frost.com , orSrividhya Parthasarathy, Corporate Communications - Europe, +91-44-42044668,or sparthasarathy@frost.com , or Sarah Lourdes, Corporate Communications -Asia Pacific, +603-6204-5878, or fax, +603-6201-7402, orsarah.lourdes@frost.com , or Sharmin Jassal, Corporate Communications -Australia, +61-2-8247-8900, or fax, +61-2-9252-8066, orsharmin.jassal@frost.com , all of Frost & Sullivan

Web site: http://www.frost.com/

Source: PRNewswire

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