New Research

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Risky Business: Are the Bank Failures Going to Affect the Office of the CFO?

Apr-23 DOC # US50521723 Insight

Authors:

• Heather Herbst

This IDC Perspective covers the effects of the bank failures, why they occurred, and how to reduce risk exposure for the office of the CFO. There are safety nets built into the U.S. banking system by the U.S. Treasury, the Federal Reserve, and the FDIC. These organizations have been created and strengthened for the past 100 years, but if regulations are rolled back, a higher risk profile for some banks will be seen, depending on who they give loans to and where they invest their deposits.

"Diversification and analysis are the keys to reducing risk for all of the entities you do business with, including banking relationships. Know who you are doing business with, and ensure that you are comfortable with their risk profile." — Heather Herbst, research director, Worldwide Office of the CFO

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Non-Banks Pose Under-the-Radar Risk to Financial Stability and Tech Spending

Apr-23 DOC # lcUS50590223 IDC Blink

Authors:

• Raymond Pucci

As discussed in a recent article from CNN, key financial agencies — including the International Monetary Fund (IMF) and Financial Stability Board (FSB) — warn that nonbank financial institutions hold almost half of all global financial assets and pose a risk to the stability of the world's financial systems. Ominous signs for nonbanks are appearing due to the rising interest rate environment as well as the integral connections between nonbanks and traditional banks through loans, deposits, and other financial transactions.

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IDC FutureScape: Worldwide Banking 2023 Predictions

Oct-22 DOC # US48660022 IDC DecisionScape

Authors:

• Jerry Silva
• Marc DeCastro
• Tom Zink
• Michael Araneta
• Aaron Press
• Raymond Pucci
• Phillip Silitschanu
• George Briford
• Karen Augustine

This IDC study provides IDC's 2023 top 10 predictions for banking. Predicting the future of banking and the implications of technology strategies at financial institutions has become more and more difficult over the past three years. But IDC believes that the predictions in this document will enable banks to overcome the challenges of rigid architectures and strategies and put those institutions in a better position to navigate the dynamic, and sometimes chaotic, market environments of the future.

"Today's goal for banking worldwide is to overcome the immediate challenges in the markets, while mapping out a longer-term strategy for growth and innovation during calmer times," said Jerry Silva, research vice president, IDC Financial Insights. "The banks that can map out strategic investments, leveraging appropriate technologies, will be best prepared to remain resilient and profitable in any situation."

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The Collapse of Silicon Valley Bank: Why Prudent Risk Management Matters

May-23 DOC # EUR250589123 Insight

Authors:

• George Briford

This IDC Perspective examines the failure of Silicon Valley Bank in the U.S. and its U.K. subsidiary, including the macroeconomic and regulatory causes. The rise in U.S. interest rates had a severe impact on the composition of the bank's assets. As rates increased, clients in the technology industry started to get into financial trouble and needed cash to limit liabilities. Many began to withdraw funds from their accounts. SVB thus had to sell a substantial amount of its bond portfolio, exposing it to price decline and leading to losses. Trading of bank shares was halted and the bank was taken over by regulators and subsequently sold.

"Without adhering to a proper balance sheet and liquidity management methodology, a relatively minor shift in market risk can wipe out an entire bank and put it into recovery." — Research Director George Briford, IDC Financial Services Insights

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IDC FutureScape: Worldwide Corporate Banking 2023 Predictions

Oct-22 DOC # US49411822 IDC DecisionScape

Authors:

• Tom Zink
• Maria Adele Di Comite
• Phillip Silitschanu
• Aaron Press
• Thomas Shuster
• Raymond Pucci
• Ralf Helkenberg
• Ganesh Vasudevan

This IDC Financial Insights FutureScape presents the top 10 predictions for the corporate banking industry.

"Caught between a rock and a hard place, the corporate banking industry is facing massive pressure to ensure liquidity and stabilize financial supply chains, while dealing with the deteriorating credit quality in the light of an emerging recession and rising interest rates," said Tom Zink, senior research director, IDC Financial Insights. "At the same time, the ongoing transformative pressure to support the emerging ecosystem is forcing banks to move quickly or face disintermediation by other ecosystem participants."

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IDC Perspective: Banking on the Cloud: Results from the 2022 CloudPath Survey

Sep-22 DOC # US48660522 Insight

Authors:

• Jerry Silva
• Karen Augustine

This IDC Perspective reviews the findings of IDC's 2022 Worldwide Industry CloudPath Survey specifically for the banking industry. Cloud services form the foundation for the banking industry's transformation to a digital business to improve innovation and gain business agility while improving resilience to disruptions from rising inflation, geopolitical challenges, and a growing digital-native population. As what IDC's 2022 Worldwide Industry CloudPath Survey shows, banks need a breadth of cloud services and need to operate in multicloud environments given that 83% of the banks surveyed use public and private cloud platforms.

"Cloud continues to be a growing component of the bank's digital infrastructure as banks recognize the importance of cloud services for their ability to innovate while improving resilience against current and future disruptions," says Jerry Silva, Vice President, IDC Financial Insights' Global Retail Banking Program. "This year's IDC Worldwide Industry CloudPath Survey shows us that the banking industry continues to accelerate cloud adoption based on the real benefits proven in the market," he adds.

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Artificial Intelligence Adoption Across Banking, Financial Services, and Insurance, Manufacturing, Telecommunications, and Retail, India 2022

Mar-23 DOC # AP50205523 Presentation

Authors:

• Swapnil Shende
• Rajiv Ranjan
• Wai Yee Lee
• Surya Narayan Saha
• Nishant Bansal
• Ayush Narain
• Vinayaka Venkatesh

This IDC Tech Buyer Presentation summarizes the artificial intelligence (AI) technology trends and developments in India’s enterprise sector in the past year and It highlights the overall AI spending outlook in 2022 in the banking, financial services, and insurance (BFSI), manufacturing, telecommunications, and retail sectors. The key drivers behind AI adoption with AI trends in the market display the overall view of each sector. The report also guides technology buyers across these sectors to leverage AI successfully in their operations and business processes.

"AI adoption has taken off now as enterprises in India, including data-intensive industries, leverage AI to overcome the physical limitations of the human workforce and open new growth opportunities by utilizing customer and enterprise data. With digitization paving the way for effortless and smooth customer experiences, multiple sectors have started focusing on customer-centric approaches to deliver more value throughout the customer journey. Developing applications using cloud-based AI remains key for deployment for most industries in India," says Swapnil Shende, associate research manager, IDC India.

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IDC Asia/Pacific names CTBC Bank and FWD Group as Banking and Insurance Leaders for 2023

Mar-23 DOC # prAP50468223 Press Release

13 Banking and Insurance Leaders recognized in the 2023 Financial Insights Innovation Awards

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IDC PlanScape: Core Banking Modernization to Meet Changing Demands

Dec-21 DOC # US48460621 IDC DecisionScape

Authors:

• Karen Augustine
• Jerry Silva

This IDC PlanScape helps organizations justify investment in core banking modernization, provides insight into different approaches to modernize core banking, and provides process-related advice for these deployments.

"Now is the time for banks to modernize core banking," says Jerry Silva, vice president, IDC Financial Insights' Worldwide Banking Digital Transformation Strategies program. "Between modern technology approaches like microservices and APIs and the use of cloud platforms ensuring scalability and resiliency for the bank's back office, banks would do well to start the journey to core system modernizations without delay."

Most banks around the world rely on aging legacy systems that cannot provide the real-time transactions or personalized services that customers demand more than ever and that they receive from both banking competitors and other industry firms. A modern core is a business enabler using the latest technology to drive better banking experiences with personalized customer engagement and faster response to market changes with new products and services, expanding revenue opportunities for the bank.

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IDC Financial Insights' Worldwide Banking Taxonomy, 2022

Mar-22 DOC # US48880922 Study

Authors:

• Karen Massey

This IDC Financial Insights study provides a functional structure of the global banking industry. It focuses on the business lines and functions within banking that drive technology spending and provides the fundamental organization behind IDC Financial Insights' IT spending forecasts as well as a means of organizing ongoing research.

According to Karen Massey, research manager, Customer Insights and Analysis, "This global banking taxonomy serves as the foundation document in terms of technology and business processes for both vendors and financial institutions to understand IDC Financial Insights' perspective on research and market forecasts."

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IDC FutureScape: Worldwide Banking 2023 Predictions — Asia/Pacific (Excluding Japan) Implications

Jan-23 DOC # AP48760322 Presentation

Authors:

• Abhishek Kumar
• Michael Sek Pheng Yeo

This IDC FutureScape presents IDC Financial Insights’ view of the top 10 predictions for financial services (including banks, insurance, and payments) as they apply to Asia/Pacific (excluding Japan) (APEJ) region. Predicting the future of banking and the implications of financial institutions’ technology strategies continues to become more difficult since the pandemic. The predictions in this document contextualized tor the Asia/Pacific region will allow financial institutions to break through the challenges of legacy and reequip themselves better to navigate the challenging and unpredictable markets that are emerging.

"With the pandemic drawing to a close in most parts of the world, institutions will need to look at the technology investments they have made recently to capitalize on the digital surge and see how they fit into a longer-term strategy and how they can be used for longer-term growth," says Michael Yeo, associate research director, IDC Financial Insights. He adds, "Banks that can remap and bolster their technologies into cohesive and sustainable growth objectives will find be best prepared to face the challenges of the near future."

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Banking Customer Experience Strategic Priorities Using Artificial Intelligence: Results from the AI Path Survey

Mar-22 DOC # US48663522 Insight

Authors:

• Marc DeCastro

This IDC Perspective reviews the findings of IDC's 2021 Worldwide Industry AI Path Survey specifically for artificial intelligence (AI) as a transformational technology in the customer experience for the global banking industry. AI refers to systems that learn, reason, adapt, and self-correct like a human, harnessing the power of data for more meaningful engagements and new growth opportunities. This document focuses specifically on how AI is being used to strategically address the customer experience across the digital self-service channels, including the onboarding, credit decisioning, and daily customer support solutions. Banks that ignore AI and the trends from this document will risk further detaching modern banking experiences for their customers and will find it more difficult to compete.

"Banks have recognized that improving the digital customer experience needs to be ramped up beyond just providing transactional information and will rely on gathering as much data as possible, both internal and external, to help create outstanding customer experiences," says Marc DeCastro, research director, IDC Financial Insights. "AI is going to be a significant part of that improvement from the onboarding, decisioning, product advice, and support provided by the institutions to their customers using everything from robotic process automation to the latest in natural language processing to make those experiences as humanlike (but not necessarily humanless) as possible."

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IDC FutureScape: Worldwide Corporate Banking 2022 Predictions

Oct-21 DOC # US47804121 IDC DecisionScape

Authors:

• Tom Zink
• Jerry Silva
• Aaron Press
• Kevin Permenter
• Tom Seal
• Ganesh Vasudevan

This IDC Financial Insights FutureScape presents the top 10 predictions for the corporate banking industry.

"Corporate banking has been one of the hardest-hit business lines in financial services, given the massive disruption to international trade and supply chains, uncertainty about the impact of the COVID-19 pandemic, politically motivated tensions and protectionism, and the transformation toward sustainable finance disrupting capital markets and traditional lending business", said Tom Zink, research director at IDC Financial Insights. "Moreover, the industry is caught in a modernization sprint as new regulations and customer needs mandate modernization, while an emerging treasury ecosystem fundamentally changes the way businesses are run."

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IDC's Worldwide Digital Transformation Use Case Taxonomy, 2021: Banking

Nov-21 DOC # US44302320 Study

Authors:

• Jerry Silva
• Karen Augustine
• Marc DeCastro
• Aaron Press
• Tom Zink

This IDC study discusses how the banking industry is accelerating its recovery from, and overcoming of, the disruptions in 2020 through the digital mission of "accelerated banking." The taxonomy defines six strategic priorities to accomplish the industry's digital mission of accelerating the pace of transformation to get back to an environment of innovation. It defines separate programs that support each strategic priority. Under each program are a set of use cases, which are discretely funded efforts supporting a program objective.

"The disruption in 2020 put the banking industry on its heels, forcing it to focus on immediate resolution to weaknesses in resiliency and scalability," said Jerry Silva, vice president, IDC Financial Insights. "But as the industry comes back from a significant disruption, the focus is turning on the acceleration of transformation to quickly get back to an environment of innovation."

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Cloud Adoption Across Varied Industries in India: Banking, Financial Services, and Insurance, Manufacturing, Telco, Retail, and Media in 2022

Oct-22 DOC # AP48500222 Presentation

Authors:

• Swapnil Shende
• Rishu Sharma
• Ganesh Vasudevan
• Sampath Kumar Venkataswamy
• Ayush Narain
• Nishant Bansal

This IDC Tech Buyer Presentation summarizes cloud technology developments in India’s banking, financial services, and insurance (BFSI), manufacturing, retail, telecommunications, and media sectors in the past year. This report highlights the overall cloud spend outlook of India in these sectors and trends and factors that drive cloud adoption in the India market. The report also provides cloud-specific use cases and guidelines to successfully implement cloud technology across each sector.

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Australia and New Zealand's Banking and Financial Services Landscape, 2022: Building Digital First Financial Services

Jul-22 DOC # AP47747922 Presentation

Authors:

• Louise Francis

This IDC Presentation explores the Australia and New Zealand (ANZ) banking, financial services, and insurance (BFSI) landscape in 2022.

The key areas examined in the report include:

• Setting the scene for BFSI digital transformation in 2022: predictions, trends and drivers of investment transformation
• BFSI's key digital strategies shaping technology investment
• ICT spending forecast and market landscape, 2022
• ANZ BFSI transformation use cases and strategic priorities
• IDC guidance for BFSI decision makers and stakeholders

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Banking & Financial Services Organizations Ratchet Up ICT Spending in Bid to Become Digitally Resilient

Jun-22 DOC # prMETA49378322 Press Release

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IDC Perspective: Westpac Takes the Lead as Banking-As-A-Service Comes to Asia/Pacific

May-22 DOC # AP47795521 Insight

Authors:

• Michael Araneta

This IDC Perspective looks at the emergence of banking as a service (BaaS) as a strategic imperative for Asia/Pacific banks, enabling banks to offer financial products and services from within the distribution channels of nonbank third parties. Some banks, such as Australia's Westpac Banking Corporation (Westpac), are noted to stand out in the eight key components of BaaS.

"Seemingly making up for the distraction of the past two years, many banks are poised to go beyond open banking, priming themselves for BaaS. BaaS, however, is not just another distribution strategy for the bank. BaaS can help banks create truly innovative business models, creating new sources of revenue. The point of some BaaS strategies might very well be in the growth of partner-generated revenues," says Michael Araneta, associate VP, IDC Asia/Pacific Financial Insights.

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IDC: Banks to Spend an Additional $31 Billion on Embedded AI on Existing Software, Fraud Management a Priority

Aug-22 DOC # prAP49573822 Press Release

IDC to reveal financial institutions’ country-specific challenges in Asia/Pacific.

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IDC Names 15 Asia/Pacific Banking and Insurance Leaders for the 2022 Financial Insights Innovation Awards

Mar-22 DOC # prAP48977422 Press Release

SINGAPORE, March 23, 2022 – IDC announced tonight the 15 best of the best Asia/Pacific banking and insurance leaders for the 2022 Financial Insights Innovation Awards. Nearing two decades, FIIA again recognizes the leading-edge financial services institutions (FSIs) with one of the most sought-after awards in the industry. This 2022, IDC continues to recognize the leading Asian financial services institutions whose business goals were achieved through the novel application of IT innovations.

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Proceedings from the IDC European Banking Executive Digital Summit 2021

Dec-21 DOC # EUR148413421 Insight

Authors:

• George Briford
• Tom Zink
• Maria Adele Di Comite

This IDC Perspective summarizes key points from the 2021 IDC European Banking Executive Digital Summit, held as a digital event on November 9, 2021, together with our partners Workday, ServiceNow, Red Hat, Adobe, Accenture, nCino, LzLabs, and Palo Alto Networks as well as multiple end-user speakers from Lloyds Banking Group, ABN AMRO Bank, ING, Komerční banka, Julius Baer, and Recognise Bank. The event focused on the following topics:

• Workforce transformation and the rise of hybrid work models
• Building a data foundation to power the data-driven bank
• Breaking legacy constraints with new platform and cloud technologies
• Tapping the ecosystem for innovation, cross-industry collaboration, and new revenue and distribution models