Estimated reading time: 0 minutes, 33 seconds

Banks That Spend More on Tech Make Better Loans: IMF

Sunday, Jan 26 2020
Originating
Written by 

Banks with bigger information technology budgets fared better during the global financial crisis, according to a new working paper from the International Monetary Fund. So reports Quartz.

Economists Nicola Pierri and Yannick Timmer looked at the ratio of personal computers to employees at bank branches and compared that with the performance of mortgages that were sold to Freddie Mac.

By 2010, in the depths of the credit crunch, banks in the top 25% by this measure of IT adoption had about half of the problem loans of banks in the bottom 25% of IT adoption. Loan performance had been similar regardless of IT spending prior to the 2008 crisis.

Read the full article from Quartz. 

Read 2136 times
Rate this item
(0 votes)
More in this category: « Ask the Management Expert: Hershman's Quick Steps to Assess Job Candidates How Customer-Centric Is Your Sales Organization? »

Related items

FOLLOW US

PMG360 is committed to protecting the privacy of the personal data we collect from our subscribers/agents/customers/exhibitors and sponsors. On May 25th, the European's GDPR policy will be enforced. Nothing is changing about your current settings or how your information is processed, however, we have made a few changes. We have updated our Privacy Policy and Cookie Policy to make it easier for you to understand what information we collect, how and why we collect it.
Ok Decline