Banks are investing heavily in data and IT to tap new potential.
Asia Pacific banks will intensify their efforts to tackle the largely unbanked segments of the population in China, India, Vietnam, Indonesia, and the Philippines; create trade finance and cash management propositions for the Asia Pacific corporate and SME market; and build strengths in retail and cross-border payments.
“Global banks will also strive to be seen as ‘more Asian’, which can spur regionalization initiatives and engender a real pursuit of the Asia Pacific market,” says Michael Araneta, consulting and research director for IDC Asia Pacific.
Araneta states that the broader area of risk management will see strong growth as banks spend on specific solutions that allow them to support growth amid weak global economic conditions.
“Spending areas around market risk, liquidity management, and asset-liability management will be of high priority. There are also some industry segments and functional IT areas that will see robust IT spending growth. In general, we see healthy IT spending from banks in large, geographically dispersed markets, as well as mid-sized banks that are attempting to be tier 1 players.”
Despite weak global economic conditions, banks are pushing hard to tap into Asia’s largely growing middle classes. We still see a lot of news on China; however, markets like Indonesia and Vietnam shouldn’t be overlooked. Growth in these markets is quite positive as we’ve seen many restaurants and apparel retailers enter the region or even greatly expand their network in the past year. The push from banks further bolsters the fact that there’s a lot of potential for growth, but it’ll take smart IT investments to capture the right data and more importantly know what to do with the data since the retail landscapes are changing so quickly.