Banking

REPORT PREVIOUSLY PUBLISHED BY OLIVER WYMAN
March 22, 2017
Industry Trends
Asia-Pacific

Abstract

Promoting the use of formal financial services continues to be a challenge, and the depth of engagement varies with different financial products: Only 18% of adults use a bank account to receive wages or pay utility bills, and only 11% borrow from formal sources.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Preface

3

Executive Summary

4

1. Introduction

7

2. Current Situation and Opportunity

9

3. Framework to Identify Barriers to Financial Inclusion

11

4. Impact of Digital Finance

18

5. Quantifying the Impact of Digital in Financial Inclusion

41

6. Segment-Specific Insights

43

7. Country-Specific Insights

50

8. Concluding Remarks

65

9. Appendix

67

Business Development Executive, Banking, EMEA

The Business Development Executive for Banking in EMEA will be responsible for all new banking market sales within the region, managing the end-to-end sales process, driving new business growth in the segment, and making a significant contribution to Celent’s overall success in the region.

by KyongSun Kong, March 22, 2017
Industry Trends
Asia-Pacific

Abstract

The trends in Asia’s mobile payments markets are moving toward growth.

Celent has released a new report titled The State of Mobile Payments in Asia-Pacific: The Impact of Fintech. The report was written by KyongSun Kong, an Analyst with Celent’s Asian Financial Services practice.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Overview of Survey

2

 

Attributes of Survey Participants

2

Recognition for Mobile Payments

4

 

Leading Sectors

4

 

Mobile Payment Coverage

4

Penetration

7

 

Offline Mobile Payment Methods

7

Adoption Varies

9

 

Success Factors

9

 

Obstacles

9

Fintech Playing an Important Role

11

 

Areas Where Fintech Is Adopted

11

 

Partnering with Fintech Companies

12

Future of Mobile Payments in APAC

14

 

Progress

14

 

Growth Prediction

14

Market Diversity and Expectations for Growth

16

Leveraging Celent’s Expertise

18

 

Support for Financial Institutions

18

 

Support for Vendors

18

Related Celent Research

19

Innovación en la Banca de América Latina: una instantánea

Miami
March 20, 2017

85% de los bancos considera crítica a la innovación para alcanzar las expectativas de sus clientes

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

by Bob Meara, March 20, 2017
Industry Trends
North America

Abstract

More than 2,600 US financial institutions went live with mobile deposit in the last two years, leading to an estimated 80 million retail users.

Celent has released a new report titled State of Remote Deposit Capture 2017: The Final Stretch. The report was written by Bob Meara, a Senior Analyst with Celent’s Banking practice.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

A Historical Perspective

4

Distributed Image Capture Environments

7

RDC Risk and Compliance: Steady as She Goes

10

 

Deposit Risk and RDC Loss

10

 

Retail RDC: Approaching Sanity

14

 

Risk Management Tools

21

Commercial Remote Deposit Capture

21

 

Financial Institution Adoption

21

 

Client Utilization

26

 

Outlook

28

Retail RDC

30

 

Small Business RDC Utilization

30

 

Financial Institution Adoption

31

 

Outlook

34

Solution Landscape

36

 

Solution Evolution

36

 

Vendor Landscape

37

Recommendations

42

Survey Methodology

44

Appendix: Solution Adoption Detail

46

 

Commercial Products

46

 

Retail Products

48

Leveraging Celent’s Expertise

50

 

Support for Financial Institutions

50

 

Support for Vendors

50

Related Celent Research

51

by Eiichiro Yanagawa, March 17, 2017
Industry Trends
Asia-Pacific

Abstract

Celent has released a new report titled Legacy Modernization in the Japanese Banking Industry Part 2. The report was written by Eiichiro Yanagawa, a Senior Analyst with Celent’s Asian Financial Services practice.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

 

Definitions

3

Legacy Modernization in the Banking Industry

4

Why Modernize?

5

 

The Unbalanced Evolution of City Bank Core Systems

5

 

Regional Banks and Shared Systems

6

 

Questions That Executives Need to Ask Themselves

7

What Does It Mean to Modernize a Core System?

10

 

Unpacking the Meaning of Digital

10

 

Digital Framework in Banking

12

Five Approaches to Modernization

23

 

New Technology and the Need for an External Perspective

24

Celent’s Recommendations

26

 

Digital Financial Services and Legacy Modernization

26

 

Diversification of Technology Sourcing Models

27

 

Legacy Modernization Framework

28

 

Modernization That Avoids Recreating Legacy Issues

31

Proposals for Japan’s Banking Industry

35

 

In Search of a New Banking Model

35

 

The Ideal Architecture

40

 

Toward a Modern Core System

45

Digital Transformation of the Banking Industry

47

 

Modularization of Industry

47

 

The Banking Industry of the Future

48

 

In Conclusion

49

Leveraging Celent’s Expertise

51

 

Support for Financial Institutions

51

 

Support for Vendors

51

Related Celent Research

52

by Eiichiro Yanagawa, March 17, 2017
Industry Trends
Asia-Pacific

Abstract

Celent has released a new report titled Legacy Modernization in the Japanese Banking Industry Part 1.The report was written by Eiichiro Yanagawa, a Senior Analyst with Celent's Asian Financial Services practice.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

 

Definitions

1

Introduction

2

 

Japan’s Banking Industry

2

 

Japan’s Banking Systems

14

 

Banking IT Services

22

Legacy Modernization Survey 2015 Overview

23

 

Survey Items

23

 

Overview of Survey Participants

23

The State of Modernization

25

 

System Replacement Goals and Strategies

25

 

Replacement Project Consideration

26

 

Challenges and Vendor Expectations

31

Business Case Perspectives

33

 

Legacy System Impacts and Merits of Modernization

33

 

Role of Business Cases

34

 

Changes in Cost Allocation

36

New Technology Adoption and Its Impact on Modernization

39

 

Changes in the IT Arena

39

 

IT Unit Assessment

40

 

Changes in Division of Labor Between IT and Business Units

41

State of the Industry

42

 

Legacy System Modernization at Japan’s Banking Firms

42

Toward Part 2

43

Appendix

44

 

Respondent Profile

44

Leveraging Celent’s Expertise

47

 

Support for Financial Institutions

47

 

Support for Vendors

47

Related Celent Research

48

by Hua Zhang,  Neil Katkov, PhD, March 15, 2017
Industry Trends
Asia-Pacific

Abstract

Fintech is changing rapidly, in part due to an abundance of innovation springing up in Asia. At the FinovateAsia 2016 conference, held in Hong Kong in November 2016, Celent identified 11 firms whose innovations stood out among the rest.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

2

Data Services: Cloud-Based and Analytics

3

 

ExbiData: Property Investment Analysis Platform

3

 

Sentifi: Market Intelligence

3

 

Xignite: Market Data Distributor

4

Digital Channels

6

 

Alpha Payments Cloud: Payment Hub

6

 

Dynamics Inc.: Intelligent Cards

8

 

Finn.ai: Conversational Banking

9

 

Ondot: Mobile Card Service

10

 

Proximiti: Location-Based Services

12

Wealth Management

14

 

Bambu

14

 

InvestGlass

15

 

WeInvest

17

Conclusion

18

Leveraging Celent’s Expertise

19

 

Support for Financial Institutions

19

 

Support for Vendors

19

Related Celent Research

20

by Hua Zhang,  Neil Katkov, PhD, March 13, 2017
Industry Trends
Asia-Pacific

Abstract

Over the past decade, China’s regulators have gradually liberalized the interest rates banks can charge. Risk-based pricing will become a core competency of banks in China and lead to more differentiated products and services, particularly for retail and small business customers.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

The Interest Rate Liberalization Process in China

2

Impact of Interest Rate Liberalization

4

 

Reduction in Profit and Structural Adjustments

4

 

Deposit Insurance System

6

 

Risk Management

7

Conclusion

8

Leveraging Celent’s Expertise

10

 

Support for Financial Institutions

10

 

Support for Vendors

10

Related Celent Research

11

The Future of Digital Banking Asia Pacific

: Singapore
: March 21, 2017
: 9 a.m.
: Neil Katkov, PhD, Banking, Asian Financial Services, Global Financial Services
Asia-Pacific

The Future of Digital Banking: Asia Pacific brings together C-suite and senior bankers from across the Asia Pacific region and beyond to share insights and discover innovations in banking for the digital age. 

Now in its second year, this banking conference will provide a platform for key decision makers at global incumbents, local banking players, and start-ups to share the most exciting developments in banking and how they will affect the future for banks, FinTechs and the customer.

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