Financial Services to Launch New Digital Ecosystems
MANILA, October 20th, 2016 – Today, IDC hosted its annual Philippines Financial Services Summit at the Shangri-La at The Fort, exploring the strategies that banks and insurers should use to progress in the digital transformation journeys. Banks and insurers need to move quickly because as much as 18% of the traditional financial services business is under threat; with this threat pervading a broad range of activities from lending, to payments, customer relationship management, and fund management.
In this fast-paced digital world, financial institutions need to be bold in their approach to re-architect existing infrastructure and systems, adopt an enterprise-wide digital transformation mindset, and embrace collaboration with new partners. Going beyond their digital strategies is key to survive in the next two years.
“The world of financial services is under major threat with the rise of new technologies now collectively known as FinTechs that use the technologies to disrupt traditional banks, insurers, and capital market players.” says Michael Araneta, Associate Vice President – IDC Financial Insights Asia/Pacific.
“A FinTech mindset can also be for the very banks that start-ups and new disruptors attempt to take down. They must turn themselves into masters of innovation and self-disruption, rethink the rules of financial services, harness next-generation technologies, and expand the universe of financial services,” adds Araneta. Banks therefore will be creating opportunities for themselves amid the disruption that is happening across the industry. Araneta mentions the “hot areas” of next-generation payments, Blockchain, and credit decisioning as the areas where innovation can come from.
Araneta continues that for banks to succeed, they need to “build new ecosystems that offer value to customers who not only want financial services, but also want financial services in the context of their lifestyle.”IDC foresees greater integration of banking with other industries particularly retail, transport, and entertainment. Banks too will need to work with new types of data sourced from third parties such as marketing agencies and other lifestyle partners.
The Philippines Financial Services Summit 2016 brought together regional industry leaders and prominent financial experts across verticals in the Philippines. The insights offered at this event will help financial services leaders plan their strategy in advance to deliver solutions that meet the challenges of today’s FinTech-disrupted market conditions. Some topics include case studies on moving banking to open platform systems, digital platform and customer experiences, mobile payments, xCommerce opportunities among other topics highlighting FinTech innovations for transformation and identifying new business opportunities.
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.
About IDC
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. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC’s analysis and insight help IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world’s leading technology media, research, and Events Company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.