Asia Pacific Banking IT Priorities in Response to the Global Recession (Strategic Focus)

Asia Pacific Banking IT Priorities in Response to the Global Recession (Strategic Focus)

Introduction

TWith the phenomenal growth and rapid industrialization of the twin giants China and India, the Asia-Pacific (APAC) region has spurred a dramatic shift in the global economic order. his report will look at how the financial crisis is impacting the region's diverse economies, examine the technology priorities across the region, and highlight go-to-market strategies for vendors

Scope

*This report will look at the underlying economic drivers in the region, the effects of the global recession and future growth prospects.

*This report will look at the technologies being utilized in response to the global recession.

Highlights

This report will look across the region from developing to advanced economies, and look at IT priorites in the face the downturn.

Historical factors and macroeconmic drivers will be explored, and examination will be made of lessons learnt from previous crises, and how they prepared the region to face the current crisis

Reasons to Purchase

*This research will enable to you to understand changes in IT budgets and how they could impact your customers

*This research will enable you to understand how evolving business pains will result in demand for specific solutions

OVERVIEW 1
Catalyst 1
Summary 1
KEY MESSAGES 2
APAC is well placed to weather the global recession 2
The lessons of 1997 have enabled APAC to face the financial crisis in a strong position 2
The regulatory response will be centered around transparency and more stringent reporting 2
APAC will remain an attractive IT market despite the downturn 2
Capital market integration will drive investment in infrastructure and market data solutions 3
Strong APAC banks on the acquisition trail will present IT integration opportunities 3
Integrated reporting and analytics can bring benefits across risk, finance and operations 3
Table of Contents 4
TABLE OF FIGURES 5
Table of tables 5
MARKET OPPORTUNITY 6
APAC is well placed to weather the global recession 7
Increased Chinese demand is key to the 'decoupling' of global growth from over-reliance on the US 9
Responses to previous crises have driven integration in the region 10
The lessons of 1997 have enabled APAC to face the current crisis in a strong position 10
Stringent and interventionist bank supervisors have enhanced the strength of APAC banks 11
CASE STUDY: past mistakes strengthen Australian banks for the future 11
APAC will remain an attractive IT market despite the downturn 12
The downturn will drive a renewed focus on costs across all aspects of the business 13
Processes and infrastructure are being re-engineered for efficiency and to build a platform for growth 15
Utilization and cost efficiencies will be sought in infrastructure 16
The regulatory response will be centered around transparency and more stringent reporting 16
Flexible reporting structures can be leveraged across multiple compliance requirements 17
Data volumes and compliance needs will combine to drive reporting automation 18
APAC markets continue to strengthen fraud and AML measures 19
Capital market integration will drive investment in infrastructure and trading data solutions 20
Exchange integration is gathering pace in the quest for efficiency and low latency across the region 20
Further integration and the upturn will drive demand for a wider range of services 21
Strong APAC banks on the acquisition trail will present large IT integration opportunities 21
CUSTOMER IMPACT 23
There is a return to core banking activities and a re-engineering of core platforms 23
An increased focus on treasury and cash services is driving investment in integrated service platforms 23
Core banking transformation is a priority due to the limits of legacy systems and M&A integrations 24
Integrated reporting and analytics can bring benefits across risk, finance and operations 27
Integrated reporting and analytics can bring significant benefits to performance management 27
Integrated risk and finance reporting platforms will assist the management of both risk and liquidity 28
Banks are looking for efficient delivery of processes, applications and infrastructure 28
Efficiency and future growth needs will both drive BPM investments, but compliance is the key catalyst 28
Banks are looking at cost-effective and flexible approaches in application delivery 29
Virtualization has been widely adopted to optimize infrastructure in APAC 30
Virtualization delivers co-ordination and scalability in infrastructure 30
Business continuity features bring significant benefits to disaster planning and recovery 31
Virtualization allows staff skills shortages to be circumvented in developing markets 31
Datacenter consolidation can also carry commensurate green benefits 31
GO TO MARKET 32
Opportunities are to be found in APAC banks providing integrated and flexible platforms 32
Banks in advanced and newly industrialized economies are looking to take the place of global institutions 32
Adaptability to regulatory environments is a key feature of successful cash and liquidity solutions 32
In light of pending regulatory changes, flexibility will be the key selling point across APAC 32
In developing markets, banks are looking for consolidation and standardization of infrastructure 33
Recommendations 33
To operate in such a diverse region, a keen appreciation of cultures and customs is mandatory 33
Vendors should target a wider range of stakeholders as risk integrates with operations and finance 33
Virtualization vendors should emphasis cost benefits in the initial phases 33
Green IT outcomes should be pushed as a win-win by vendors in utilization technologies 34
Vendors of all sizes must stress how they can meet today's needs of cost and implementation efficiency 34
APPENDIX 36
Global banks by market capitalization, 2008-09 36
Definitions 37
Methodology 38
Further reading 38
Ask the analyst 38
Datamonitor consulting 38
Disclaimer 38
List of Tables
Table 1: The emerging regional framework 10
Table 2: A sample of banks' core system projects underway as legacy systems reach their limit 25
Table 3: Vendors should extol the virtues of server consolidation across core IT infrastructure 34
Table 4: A changing of the guard: global banks by market capitalization, 2008-09 36
Table 5: APAC Coverage 37
List of Figures
Figure 1: Regional groupings 7
Figure 2: Developing Asia to provide greatest growth opportunities during the downturn 8
Figure 3: FM IT spending in emerging APAC will be more resilient than in mature markets 12
Figure 4: Cost control and IT efficiency driving IT strategy in APAC 13
Figure 5: Banks must address their cost base while positioning themselves for regional growth 14
Figure 6: Every effort must be made to leverage existing compliance investment 17
Figure 7: Fraud and process automation are IT compliance investment priorities in APAC 19
Figure 8: Fraud and AML are a key component of operational risk 20
Figure 9: APAC banks poised to benefit from weakness of global banks 22
Figure 10: Consolidation and re-engineering are the order of the day in APAC 24
Figure 11: ANZ is typical of large Australian banks in targeting Asia for future growth prospects 26
Figure 12: Reporting solutions must be leveraged across multiple business requirements 27