Southeast Asia IT Spending in Banking

by Hua Zhang, January 26, 2016
Industry Trends
Asia-Pacific

Abstract

Celent estimates bank spending on IT across Southeast Asia will grow to US$5.2 billion in 2016, approximately 4.6% higher than 2015. The good news is that the momentum is positive and consistent, and it will continue for the next few years.

In Southeast Asia, banks are beginning to use technology to reinvent customer service and delivery models. The major trends are core banking replacement and digital channels. The shift to digital channels and automation not only lowers the transaction costs but also changes the economics of serving millions who are currently unbanked. The major fields include core banking, mobile banking, mobile payment, big data, and relationship-based pricing.

In the report Southeast Asia IT Spending in Banking, Celent examines market size, market trends, and vendor strategies.

“Celent recommends that vendors can provide advanced core banking systems to immature markets such as Laos and Myanmar; digital channel solutions to markets in Malaysia, Indonesia, Thailand, and Vietnam; and innovative solutions to Singapore markets, such as big data and cloud solutions,” says Hua Zhang, an analyst with Celent’s Asian Financial Services practice and author of the report.

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

Total IT Spending

2

Banking IT Spending by Country

6

 

Singapore

6

 

Malaysia

7

 

Indonesia

8

 

Thailand

8

 

Philippines

10

 

Vietnam

10

 

Laos

11

 

Myanmar

12

Top Trends

14

 

Renewal or Core Banking

14

 

Mobile Banking and Mobile Payment

14

 

Big Data

14

 

Relationship-Based Pricing

15

 

Customer Analytics

15

 

Embedded Digital Banking

15

 

Other Trends

15

Conclusion

17

Leveraging Celent’s Expertise

18

 

Support for Financial Institutions

18

 

Support for Vendors

18

Related Celent Research

19

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