Asian financial institutions will keep spending more in technology, according conclusions from UK-based firm Misys’ Southern Asia Market Forum.
The forum brough together 100 representatives from 40 of the region’s leading financial institutions.
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The key discussion of the forum was the high growth technology spending of financial institutions in Asia, which is accessible banking platforms such as mobile and social channels. They are turning regulatory pressure to a bank’s advantage.
Michael Yeo, market analyst, IDF Financial Insights Asia Pacific, commented that IT spending of financial institutions was up 4% worldwide in 2012. In Asia Pacific, this figure was 7%, notably in the areas of core banking, risk management and CRM.
He predicts it will increase to 8.8% in 2013. The rise in high tech spending is evident in Singapore, Malaysia, Indonesia and Philippines.
In 2013, there will be an uptake of forecasting and predictive modeling; as well as mobile channels, which in Asia are likely to be driven by wealth management firms, according to Yeo.
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By GlobalDataIn the next two years, regulatory compliance software is likely to account for a large part of financial institutions’ IT investment spending. Countries in Asia, such as Hong Kong, Singapore and Malaysia, are starting to converge on how they deal with regulatory demands.
Due to the increasing number of compliance regulations and their growing complexity, enterprise risk management departments are now receiving funding more easily for their risk management software. It is becoming clear that financial institutions consider collaborative risk management solutions a key component of their risk technology environment.
