Asian Financial Services

Asia-Pacific

Abstract

In this webinar, KyongSun Kong, Analyst in Celent’s Asian Financial Services Practice, shares results of a recent survey to examine the status of mobile payments in Asian countries, estimate IT spending levels, and explore future growth drivers.

For more information about this event, please contact Chris Williams at cwilliams@celent.com or Yuya Fukumori at yfukumori@celent.com.

by Eiichiro Yanagawa, March 31, 2017
Industry Trends
Asia-Pacific

Abstract

This report examines the efforts planned and in progress to shorten the settlement cycle of Japanese government bonds (JGBs) from two business days after the trade date (T+2) to one (T+1).

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 operating unit 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

Japan’s Payment and Settlement Systems

3

 

Overview of Japan’s Payment Systems

3

Securities Settlement System Trends

6

 

Global Trends

6

 

Technology Trends in Japan

7

 

Securities Settlement System Evolution: A Brief History

11

JGB T+1 Settlement and the New Repo Market

15

 

Shortening JGB Settlement

15

 

Globalization Challenges and Future Expectations

15

 

Outlook for the New Market

16

 

The New Market’s Grand Design

17

The Advent of a New Repo Market

22

 

Money Market and Repo Market Trends

22

 

Repo Market: An International Comparison

23

 

New Market Potential

25

 

Laying the Groundwork for the New Repo Market

26

 

The Road to JGB T+1 Settlement

26

The Future of the Securities Settlement Evolution

29

 

Celent’s Recommendation: Digital Shift as an Innovation Opportunity

29

 

Transitioning from an Integral Model to a Modular Model

30

 

Modular Financial Services

31

 

Changes in IT Management and Sourcing Models

32

 

IoT, AI, and Blockchain

34

 

Financial Infrastructure Revolution

36

About the Sequel Reports

37

Leveraging Celent’s Expertise

38

 

Support for Financial Institutions

38

 

Support for Vendors

38

Related Celent Research

39

Global

Abstract

Leveraging artificial intelligence, insurers are able to engage with consumers in a faster, more consistent manner. Virtual customer service representatives, robo advisors, and virtual assistants are just the beginning. Celent Senior Analyst Wenli Yuan discusses real and potential use cases for leveraging artificial intelligence technology in the insurance industry — both now and in the future.

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 operating unit 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

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 operating unit 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

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 operating unit 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 operating unit 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 Neil Katkov, PhD,  Hua Zhang, 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 operating unit 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 Neil Katkov, PhD,  Hua Zhang, 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 operating unit 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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