The banking industry in Asia/Pacific* signals entering an era of maturity in its product capability and new interests towards committing towards ESG initiatives for 2023
SINGAPORE, May 04, 2023 – According to a recent IDC survey, Role of Technology in the Banking Industry, 83.2% of banks in Asia/Pacific* will increase their technology budgets in 2023, with 14.8% signaling they will increase their budgets by 20% or more. The IDC survey also revealed that security and data transformation will be the key focuses of technology investments in 2023, with 80.4% of banks planning to increase their budgets in security/identity and access management , followed by big data & analytics (68.4%) and artificial intelligence(AI)/machine learning solutions (64.6%).
These priorities reflect an urgency for banks to address the rapidly escalating landscape now driven by institutionalized threat actors with AI-enhanced tools to combat security risks. Increasing investments into data transformation suites also reflects the new value of banking data as a significant commodity and driver of new revenue, where establishing new analytic frameworks and methodologies can offer banks immense advantages over their competitors.
IDC’s key findings from the survey include:
- The largest pain point for banks when navigating digital transformation is in maintaining stability and minimizing downtime (47.8%), followed by managing operational risks of migration (43.7%).
- In the next 24 months, APeJ banks are prioritizing the enablement of third-party integration (50.0%) and innovating corporate banking products via API (48.1%).
- In the next five years, 70.6% of banks believe that their ESG strategies will positively impact their profits.
“The banking industry is always situated at the forefront of constant innovation, amidst challenges posed by global economic uncertainties, emerging competitors, and ever-changing customer demand”, said Adam Kamarul, Market Analyst at IDC Financial Insights. “The priorities set by the banks in 2023 serve both as a guidance on where banking is headed next, and a signal for the types of technology innovations that will take place.”
The IDC survey, IDC Banking Survey Asia/Pacific 2023: Role of Technology in the Banking Industry — Sentiments, Priorities, and Considerations on Technology Investments (Doc #AP50378923), polled 316 banking decision-makers from Australia, China, Hong Kong, India, Indonesia, Malaysia, New Zealand, Singapore, and Thailand. The survey explores the banking industry’s considerations and priorities for technology investments, product developments, and ESG strategies. It also explores sentiment across key technology adoption, which tracks the “buy/build/partner” considerations when sourcing for technologies.
For more information on this IDC Survey presentation, please contact Adam Kamarul at mkamarulzaman@idc.com. For media inquiries, please contact Miguel Carreon at mcarreon@idc.com or Michael de la Cruz at mdelacruz@idc.com.
*Asia/Pacific excluding Japan
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International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC’s analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world’s leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDCAP and LinkedIn. Subscribe to the IDC Blog for industry news and insights.
