âThe Chinese financial services industry is becoming increasingly competitive,â says Elsa Yan, a Senior Consultant at Kapronasia. âInstitutions are looking to develop channels and analytics to better serve customers who have an increasingly wide choice of providers. Mobile Banking, Online banking, and more robust Business Intelligence are just three of the ways banks will be accomplishing this.â
This push to innovate is largely being driven by increasing competition, not necessarily from foreign banks, who are largely, due to regulations, limited in the products and services they can offer the market. The real competition is coming from the small and medium banks in China who are looking to capture market share from the larger incumbent banks as well as their increasingly competitive peers.
Some of the key findings in the report include:
â¢ Mobile Banking is set to grow as more banking applications are moved onto a mobile platform and consumers adopt newer richer mobile devices. However, safety and security remain the biggest concerns among consumers to readily embrace mobile banking.
â¢ Online payment is growing rapidly, driven by the increasing popularity of online personal wealth management transactions; and it is expected to grow faster, underpinned by its cost efficiency and more value-added services provided by banks.
â¢ Demand for business intelligence (BI) is on the surge, thanks to wider applications; Small and Medium Sized Banks are actively adopting BI solutions to increase their competitiveness. âWith China recently reporting GDP growth of over 10% in 2010, the country remains a key part of the global economic story and will only increase in importance in 2011,â said Zennon Kapron, MD of Kapronasia. âChinaâs
financial industry is changing rapidly and so are the demands on the technology that supports it. Channels and analytics are two of the key ways Kapronasia sees the industry changing in 2011.â
Besides providing Chinese financial institutions with a look at what their competitors will be focusing on in 2011 to innovate and drive their business, the report also offers key insights for technology vendors on how best to position their offerings to complement the priorities of their customers.
The report is available through the Kapronasia website and will be distributed on January 31st, 2011.