Wright says that the current international regulatory agencies, like the International Monetary Fund and World Bank, will either have to reinvent themselves or be replaced with new agencies. Either way, that means regulatory changes are very likely -- and IT will have to implement the new rules.
Although financial institutions already devote significant IT resources to compliance requirements, they may have to devote a higher proportion as global rules come into force, Wright says. However, "IT won't be given any more money. They will have to take it from existing budgets unless they can produce a return on investment and business case based on consolidation and rationalization," he adds.
IT has already gotten a taste of how to handle such new requirements, due to regulations like Sarbanes-Oxley, notes Michael Mills, director of professional services and systems at law firm Davis Polk & Wardell. For example, IT has already found the money for e-discovery, which had been a nonexistent expense just a few years ago and now collectively costs companies $1.5 billion. Mills sees IT having to find even more resources for compliance as the response to the financial crisis brings on more and more regulations.