New Research

Summary

This IDC Perspective looks at IDC's 2023 Worldwide Industry CloudPath Survey results for the global banking industry. In 2023, banks globally continue to recognize the critical importance of migrating to the cloud and gaining real benefits to both lines of business (LOBs) and IT and operations groups. Public cloud services have been proven to bring new services to the market faster and more powerfully by accessing the latest functionalities provided by the cloud-based software market and better leverage enterprisewide data supported by IDC's survey data.

"Even critical banking workloads are moving to public cloud," says Jerry Silva, VP, IDC Financial Insights. "This is a sign that, along with improving innovation from a business perspective, public cloud also improves the table-stakes areas of security and compliance," he adds.

Summary

This IDC Perspective reviews the findings of IDC's April 2023 Worldwide Industry CloudPath Survey specifically for the banking industry.

"Private cloud remains a popular choice, predominantly for large institutions, especially for workload and data that are deemed sensitive or critical to the bank's operations," says Jerry Silva, vice president, IDC Financial Insights. "Many of the factors that are often used against public cloud have been addressed by the cloud providers, enabling the expanded appeal of public cloud."

Summary

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."

Summary

This IDC Survey Spotlight highlights the results of IDC's Worldwide Industry CloudPath Survey. The survey reaches out to 300 financial institutions globally, including 100 each in the banking, insurance, and capital markets subindustries. The survey asks for general feedback on the adoption and use of both public and private cloud, as well as posing industry-specific questions about actual and planned workloads moving to cloud, concerns of cloud, criteria for moving workloads to cloud, and expected and real benefits from the adoption of cloud.

"In addition to the continued adoption of public cloud in the banking industry, private cloud is still proving to be a critical deployment model for banking institutions," says Jerry Silva, program vice president of IDC Financial Insights. "Every individual institution will have its reason for choosing between public and private cloud for workload modernization, but according to IDC's 2023 Worldwide Industry CloudPath Survey, private cloud is delivering actual benefits that exceed expectations in almost every area of the institution's business, IT, and operations areas organizations."

Summary

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

Summary

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.

Summary

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."

Summary

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.

Summary

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."

Summary

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.

Summary

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.

Summary

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

Summary

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

Summary

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."

Summary

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."

Summary

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."

Summary

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.

Summary

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

Summary

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.

Summary

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

Summary

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.