What Is the IT Budget Benchmark for Financial Services Firms in Singapore?

May 4
5 min read

Updated: May 6

Financial services firms in Singapore typically budget for IT using per-user cost benchmarks and operating model considerations, rather than a fixed percentage of revenue.

For firms with 20 to 80 employees, IT spending commonly ranges between:

S$120 to S$155 per user per month (typical range)
Up to S$175+ per user per month for more advanced security and compliance environments

This budget goes beyond basic IT support. It includes the people, systems, tools, and processes required to manage technology risk effectively, particularly in environments aligned with MAS (Monetary Authority of Singapore) Technology Risk Management (TRM) principles

How Financial Services Firms Should Approach IT Budgeting

Unlike many other industries, IT budgets in financial services are not reliably measured as a percentage of revenue, due to differences in:

Business models (e.g. advisory vs asset management vs fintech platforms)
Revenue structures (e.g. AUM-based vs transaction-based)
Varying reliance on technology

Instead, firms should benchmark IT investment based on:

Number of users
Risk exposure
Security and compliance requirements
Operational complexity

This provides a more practical and accurate way to plan IT spend.

What Makes Up a Total IT Budget?

When planning an IT budget, it’s important to look beyond just monthly support costs.

A complete IT budget includes all the components required to keep your business systems secure, resilient, and able to respond effectively when issues or incidents occur.

1️. People (Internal or External IT Support)

This includes either:

Internal IT staff (salary, CPF, bonuses), or
Managed IT services (monthly per-user support)

This is the day-to-day management layer that keeps systems running and issues resolved.

2️. Hardware (Devices & Equipment)

These are the physical tools your team uses:

Laptops and desktops
Servers (if applicable)
Network equipment (firewalls, switches, Wi-Fi)

Hardware is not a one-time cost.

👉 As a general best practice, businesses should plan to refresh equipment every 3 to 4 years to maintain performance, compatibility, and security.

While some organisations may extend this to 5 years or longer, older systems can:

Struggle with newer software and security tools
Increase the risk of hardware failure
Fall behind on security updates and compatibility requirements
Move out of manufacturer warranty and support coverage

Once devices are out of warranty, firms may face:

Delays in hardware replacement
Limited vendor support
Increased operational risk during failures

From a financial services perspective, maintaining supported and in-warranty systems helps reduce both operational disruption and security risk.

3️. Software & Subscription Services

Most modern IT environments rely heavily on subscription-based services, such as:

Microsoft 365 or Google Workspace
Email and collaboration tools
Security software (endpoint protection, email security)
Backup solutions
Cloud platforms and infrastructure services

In financial services environments, firms may also rely on industry-specific applications, such as:

Portfolio management systems
Trading or execution platforms
CRM and advisory tools
Market data platforms such as Bloomberg

The cost of these applications can vary significantly depending on the business model, licensing structure, and vendor.

While MSPs typically do not manage or support these specialised financial systems directly, their role is to ensure that:

The underlying IT environment is stable and secure
Systems are compatible and properly configured
Performance and connectivity requirements are met

This ensures business-critical applications can run reliably within a well-managed and secure IT environment.

4️. Cybersecurity & Monitoring

This includes tools and services that actively protect your business:

Threat detection and monitoring
Patch management (keeping systems updated)
Identity and access controls
Endpoint protection and response

For financial services firms, this is a core part of managing business risk, not just an IT add-on.

For a deeper breakdown, refer to what IT security controls fintechs should follow in Singapore.

5️. Backup & Business Continuity

This ensures your business can recover from:

Cyber incidents (e.g. ransomware)
System failures
Accidental data loss

Includes:

Data backups
Recovery systems
Regular testing

6️. Incident Response & Recovery Readiness

An often overlooked but critical component is how your firm responds when something goes wrong.

This includes:

Incident response plans and procedures
Defined escalation processes
Access to incident response expertise when needed
Recovery coordination and system restoration

For financial services firms, this is especially important as MAS TRM places strong emphasis on incident management and operational resilience.

7️. Systems & Tools (Behind-the-Scenes Operations)

Many firms overlook this, but it is essential for maintaining control and visibility.

This includes platforms such as:

Ticketing systems (to track and resolve issues)
Monitoring tools (to detect problems early)
Patch and update reporting systems
Security logging and audit trails

These tools provide:

Consistency
Visibility
Auditability

Total IT Budget Considerations (Example)

The total IT budget depends heavily on your operating model and business requirements.

Example: 50-Person Financial Services Firm

MSP Model:

~S$72K to S$105K+ per year

In-House Model:

~S$120K to S$250K+ per IT hire

Hybrid Model:

Combination of both

Important Note

These estimates do not include industry-specific application costs (e.g. portfolio management, trading platforms, Bloomberg terminals), which can vary significantly.

As a result, total IT budgets are often higher depending on application requirements and system complexity.

Key Insight

Many firms underestimate IT budgets by focusing only on support costs, without accounting for hardware, subscriptions, security, incident response, and internal resource costs.

In-House IT vs MSP Budget Considerations

Firms often compare:

In-House IT

Higher fixed cost
Dependent on individual capability
Limited coverage across security, cloud, and governance

Lower-cost hires may reduce upfront spend, but often come with:

Narrower experience
Limited exposure to financial services risk requirements
Higher key person risk

MSP (Managed IT Services)

Predictable monthly cost
Access to a team of specialists
Built-in tools and structured processes

For a deeper comparison, refer to in-house IT vs MSP for financial services firms in Singapore.

The Role of an MSP in Structuring Your IT Budget

A key advantage of working with an MSP is the ability to bring all components together into a cohesive, structured operating model.

Beyond day-to-day support, MSPs can provide:

Defined Incident Response SLAs aligned with business and compliance needs
Access to specialist expertise on demand (e.g. security consultants, incident response support)
Structured escalation and coordination during incidents
Integrated tools, reporting, and governance processes

This ensures your IT environment is not just functional, but managed, monitored, and prepared for real-world risks.

Real-World Example

A 45-person Singapore-based investment firm was spending below S$100 per user per month on IT.

While costs were low, the firm experienced:

Limited security visibility
Inconsistent patching and monitoring
Gaps in documentation

After restructuring its IT budget to ~S$140 per user per month:

Security controls were standardised
Monitoring and reporting improved
The firm passed investor due diligence more smoothly

The increase in spend resulted in reduced operational risk and improved business confidence.

How to Evaluate Your Current IT Budget

Consider the following:

Does your budget include both IT operations and cybersecurity?
Are your systems continuously monitored?
Do you have documented controls and processes?
Are you prepared for audits or due diligence?
Can your IT environment scale without increasing risk?

If the answer to any of these is unclear, your budget may not be aligned with your business needs.

Final Thoughts

For financial services firms in Singapore, IT budgets are not just about cost control, they are about risk management, resilience, and long-term scalability.

For firms with 20 to 80 employees, a practical benchmark is: