TECH BUYER Jan 2022 - Tech Buyer Presentation - Doc # AP48731922
IDC FutureScape: Worldwide Corporate Banking 2022 Predictions — APEJ Implications
The dislocation caused by the Covid 19 pandemic and corresponding technology-driven shift have made seismic changes in otherwise quite conservative corporate banking space in the Asia/Pacific region. The declining margins and increasing competition are further driving regional corporate banks to break new grounds to compete effectively with global banks and fintech players at the vanguard of technology. Against this backdrop, we can expect that corporate banks in the region will accelerate their modernization projects for systems and services with multiple initiatives such as moving to cloud, advanced analytics, and aligning environmental, social, and governance (ESG) priorities with their growth strategy.
The Asia/Pacific region dominates the global banking landscape, and with the region's gross domestic product (GDP) projected to grow at the rate of around 5%, the corporate clients are looking at their banks for comprehensive, customized, and integrated solutions aligned with digital economy. To succeed, corporate banks in the region can be expected to significantly increase their technology iteration as they evolve and innovate corporate banking offerings to get closer to their clients.
"While regional corporations have been traditionally turning to the global banks for their corporate banking needs, large domestic banks are increasingly gaining ground in the corporate banking arena by deploying cutting-edge technologies and capabilities. Whether it be accelerated adoption of cloud or pivoting their ESG priorities, corporate banks in the region will delve further into technology to reinvent their strategy and deliver value to corporate clients," says Ganesh Vasudevan, research director, IDC Financial Insights.