Banks in the Asia/Pacific region will be preoccupied with the latest technology initiatives in 2011, according to an annual report by IDC Financial Insights. In light of the current pro-growth economic environment, new drivers such as the emergence of various social and technology phenomena have emerged to shape technology priorities in banks and ushered in the return of innovation.
"It is not so much about cost management or back-to-basics that motivate banks today. IT projects in 2011 will be driven by new customer centricity objectives, new compliance mandates, as well as alternative ways of using and paying for technology. Ambitious projects around will be pursued, resulting in a significant lift to IT budget," states Michael Araneta, Associate Director for IDC Financial Insights Asia/Pacific.
Li-May Chew, CFA, Associate Research Director, IDC Financial Insights Asia/Pacific adds, "In 2011, we do not expect the cost of regulatory compliance to diminish. It will, in fact, be expanded in light of new regimes for liquidity management and increasing mandates from regulators. We are also expecting more regulatory guidelines on technology and operations as banks take to new alternative ways of consuming IT. Just as it should, risk management will continue to be a top initiative despite better times."
According to the report, the emergence of super-regional banks, the imminent creation of the ASEAN economic community, shifts in fee income sources, as well as the performance of China's economy are several macro-level trends that can prove to be disruptive and transformative in the region's banking business in 2011.
To be effective in the “new normal” Asia/Pacific marketplace, the CXO has to be well-versed in the many new terms and concepts that have emerged out of social and technology phenomena, and not dismiss them outright as fads that will eventually pass. IDC Financial Insights believes that trends such as cloud computing, big data, the hyper-personalization of interactions can bring even greater transformation to how management runs and operates the banking business.
Customer centricity is clearly a major theme for Asia/Pacific banks in 2011. IDC Financial Insights expects three out of the top ten strategic IT initiatives for banks in 2011 to be centered on customer centricity. The race for public mindshare in being the most customer-friendly institution will be frantic, resulting in increased spending on media and advertising. As such, it is crucial for banks to design their own brand of customer centricity to effectively stand out from the crowd.
The top four initiatives for 2011 identified by IDC Financial Insights Asia/Pacific include customer data management, channels management, risk management and compliance, and innovative/alternative delivery of IT.
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