Overall technology spending by the financial services industry is...

Overall technology spending by the financial services industry is increasing, but at a slower rate than in the late 1990s, according to a Tower Group study conducted for the Securities Industry Association. Technology spending by the industry is expected to increase by 7.8% a year between 2000 and 2004, compared with the torrid 26.5% annual growth rate between 1996 and 1998. In addition, the study said, securities firms are focusing technology spending on infrastructure upgrades in order to meet one-day trade settlement requirements. Meanwhile, industry spending on Internet projects declined more than 10% between 1998 and 2000.