Technology spending will continue to rise among Asian financial institutions; this was the overwhelming conclusion of the Misys Southern Asia Market Forum 2013, which bought together over 100 representatives from 40 of the region's leading financial institutions.
The high growth technology spending of financial institutions in Asia; accessible banking platforms such as mobile and social channels; and turning regulatory pressure to a bank's advantage were among key discussions at the forum.
Michael Yeo, Market Analyst, IDF Financial Insights Asia Pacific, commented that IT spending of financial institutions was up 4% worldwide in 2012. In Asia Pacific, this figure was 7%, notably in the areas of core banking, risk management and CRM, and Yeo predicts it will increase to 8.8% in 2013. The rise in high tech spending is evident in Singapore, Malaysia, Indonesia and Philippines.
In 2013, there will be an uptake of forecasting and predictive modeling; as well as mobile channels, which in Asia are likely to be driven by wealth management firms, according to Yeo.
In the next two years, regulatory compliance software is likely to account for a large part of financial institutions' IT investment spending. Countries in Asia, such as Hong Kong, Singapore and Malaysia, are starting to converge on how they deal with regulatory demands. Due to the increasing number of compliance regulations and their growing complexity, enterprise risk management departments are now receiving funding more easily for their risk management software. It is becoming clear that financial institutions consider collaborative risk management solutions a key component of their risk technology environment.
Bret Bolin, CEO of Misys, states, "Misys provides solutions for more than 1,800 of the world's banks. We focus on the challenges these financial institutions face now and partner with them to provide them with valuable solutions to help them meet the challenges of the changing marketplace in which they operate. This two-day forum explored those challenges and assessed how each of our solutions enables firms to serve their customers better. We continue to evolve our solutions to add more and more value to our customers as we help them meet their business needs and those of their customers."
Misys operates 17 offices in Asia, including three development centres and two recently opened offices in the Philippines and Vietnam. Approximately a third of the firm's new clients signed in the past year are Asia-based.