DH Corp., Fiserv, Fidelity National Information Services (‘FIS’) and others who sell technologies and services to banks have seen a drop in new spending by their clients as a factor in slower growth in key businesses. Some say banks have pushed off technology budgets to next year. Others say banks are so focused on fixing compliance problems that they’re working on those issues instead of upgrading core systems that can generate revenue.

Banking technology vendors make software and sell consulting services for functions like payment processing and account tracking. Banks have in recent years opted to buy more software than build it themselves, a boon to these firms. But increasingly, some banks are outsourcing functions entirely, cutting back on their own needs, or letting contracts linger rather than shopping for tech upgrades.

 “Banks are slowing spending down in certain areas,” and investing instead “in the areas that are the most meaningful right now” such as compliance and digital banking, Fiserv CEO Jeffery Yabuki told analysts. Fiserv also pointed to some banks shifting from buying software outright to paying recurring fees to use it, which can also slow revenue intake.

The big technology vendors also said digital banking would be a new spending focus - but banks are also at times tapping new fintech upstarts as tech partners, such as GreenSky for mobile personal loans, or Blend Labs for online mortgages.