Singapore and Hong Kong, December 10, 2013 – Asia/Pacific banks will race to out-innovate their competition in 2014, taking advantage of how some of their peers are distracted by other concerns or are maintaining business-as-usual.
This was revealed in a recently published report by IDC Financial Insights Asia/Pacific that presents the top 10 trends expected to impact business and technology decisions in the upcoming year. More insights are revealed in the IDC Financial Insights report, “Asia/Pacific Banking 2014 Top 10 Predictions: The Next Best Steps” (forthcoming), December 2013.
Michael Araneta, research director for IDC Financial Insights Asia/Pacific explains that when it comes to planned IT investments, the Asia/Pacific banking markets will split into two segments: The ultra-high growth markets on one hand, and then the laggards.
“Countries like Hong Kong, Malaysia, Singapore, and Australia will set best practices in the use of technology, ensuring that they lead the agenda for innovation in financial services in the next few years.”
While some of the upcoming innovations are aimed to improve efficiencies of the technology infrastructure of the institution, a lot more of these innovations address the evolving needs of the customer.
IDC Financial Insights believes this will lead to the highest-ever spending on “customer centricity” within the Asia/Pacific banking industry. The top ten predictions for 2014 are:
1) In terms of IT spending growth, the 12 key banking markets will split into ultra-high-growth and low-growth groups.
2) “Over-regulation” will be proven effective as new or enhanced regulations for Asia/Pacific banks attain their intended effects.
3) IT spending on the customer will be the highest on record as the scope of customer centricity projects broaden.
4) Fighting the threat of obsolescence, bank branches will evolve to be the focus of Internet of Things (IoT) experiments.
5) The mobile form factor will entrench mobile devices at the heart of the bank’s omni-channel strategy.
6) Global banks that retreated from the region at the height of the crisis will muscle their way back in to Asia/Pacific markets.
7) Analytics will find low-hanging fruits in Asia/Pacific wealth management.
8) Cloud adoption for Asia/Pacific banks will no longer be a binary choice between Private Cloud and Public Cloud.
9) Asia/Pacific vendors will push their own propositions for corporate treasury and cash management.
10) Core banking players will innovate faster than the ability of Asia/Pacific banks to sign new core deals.
The IDC Financial Insights report also reveals changing perceptions of banking leaders with regard to regulation.
“Banks have come to realize that regulatory compliance and the costs associated with it are a part of the equation now. A significant part of the IT budget each year is out of one’s control.”
Furthermore, regulation has proven to be effective in ensuring the risk discipline within Asia/Pacific banks. Araneta says, “Particularly in the area of IT risk management, regulations have encouraged IT optimization and IT performance management projects that might not have been priorities initially.”
About IDC’s Predictions
IDC’s annual Predictions in APEJ draws upon the latest IDC research and a worldwide brainstorming exercise among IDC’s 1000+ analysts. This was followed by an extensive regional review to weigh in on key industry events, user trends, vendor strategies and economic measures that promises to uniquely define the technology trends that would impact and drive the market in APEJ for 2014. Across the globe, following the release of IDC’s global top ten predictions, IDC’s geographic, technology and industry teams will be releasing their own specific predictions in the coming months.
About IDC Financial Insights
IDC Financial Insights assists financial service businesses and IT leaders, as well as the suppliers who serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing the banking, insurance, and securities and investments industries. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world’s leading technology, media, research, and events company. For more information, please visit www.idc-fi.com, email email@example.com, or call 508-620-5533. Visit the IDC Financial Insights Community at http://idc-insights-community.com/financial.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 48 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world’s leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.