In this report, Financial Insights presented and analyzed the Asia/Pacific core banking deals in 2008. Based on Financial Insights' qualification criteria of what constitutes a core banking project, the number of deals in 2008 increased only slightly from the previous year.
Financial Insights attributes the slight increase to the challenge that Asia's financial institutions are currently facing â balancing the need to control costs in this difficult economic environment while making necessary core banking investments to maintain a competitive edge in their markets.
Abhishek Kumar, Senior Research Analyst, Asia/Pacific IT Benchmarking Service, states, "The number of core banking deals provides only one perspective of the overall picture of core banking investments in the region. The lack of a significant change in the number of core banking deals in the Asia/Pacific region for 2008 further validates Financial Insights' claim in our previous year's report about the continuing evolution of the core banking market in the region with numerous financial institutions completing initial core banking deployments."
In this study, Financial Insights also found that fledgling economies such as Vietnam no longer has the larger share of core banking deals in the region. In 2008, China and India deployed the most number of core banking solutions in the region. These two countries are expected to continue to represent the lionâs share of core banking deals in the Asia/Pacific region for 2009.
"In 2009, as with 2008, we do not expect any significant increase in the number of core banking deals in Asia/Pacific. However, single product or module-related deals are beginning to represent a larger portion of the core banking landscape, with financial institutions seeking to bolster existing solutions so as to expand their scope of business to tap additional revenue streams," adds Kumar.
Kumar concludes, "Core banking will undoubtedly continue to be of high strategic importance for financial institutions. For banks who have not made this investment in core banking, we strongly recommend that they do not prioritize cost-cutting over this necessary investment."