From the Newsroom*
São Paulo – Banks based in Brazil invested US$ 8.5 billion (R$ 18 billion) in technology last year. The value means 11% of the net assets of financial institutions, according to a study by Getúlio Vargas Foundation (FGV-SP), one of the most renowned business administration colleges in Brazil, in the southeast city of São Paulo. The study shows that banks are the largest investors in information technology in the country.
These expenses were US$ 1.22 billion (R$ 2.58 billion), or 16.7%, greater than those made in the previous year. In 2004, financial institutions in Brazil invested US$ 7.3 billion (R$ 15.4 billion) in technology, 10.5% of net assets. According to the Brazilian Federation of Bank Associations (Febraban), the tendency is for further growth this year.
One of the spaces for discussion of banking technology is the Financial Institution Information Technology Congress and Exhibition (Ciab Febraban), to take place between June 21 and 23 in São Paulo. It should bring together 1,500 representatives of the financial sector in the country and specialists in technology and marketing. The theme will be the "Virtual Society".
"Brazilian banks, pioneers in ample use of electronic trade in Brazil, have already identified that the future is in doing business in the digital era," according to the FGV-SP study. Internet Banking and Mobile Banking are some of the areas in which financial institutions are investing.
The Annual Cost per Keyboard (CAPT) at banks is US$ 22,000 dollars, whereas in the service sector the total is US$ 10,000, in industry, US$ 9,000, and in trade, US$ 6,400. This index is determined by total investment divided by the number of keyboards installed in companies, including terminals at Automatic Teller Machines and cashiers.
*Translated by Mark Ament
