Asia Pacific banking consolidation to intensify in 2010, Says IDC Financial Insights

Another important trend to note is the emergence of Asia/Pacific super-regional banks. These banks have become more aggressive despite adverse conditions, and are steadily building a franchise beyond their home markets. The banks' regionalization strategies however rely on regional units that are close in proximity, and limited to one part of the region.

The super-regional strategies of ANZ Bank (Australia), Commonwealth Bank of Australia (Australia), OCBC Bank (Singapore), DBS Bank (Singapore), OCBC Bank (Singapore), Maybank (Malaysia) and CIMB Group (Malaysia) are cited in the report.

Araneta adds, "Interestingly, the rise of super-regionals has occurred just as international players retreated from the region or have offloaded shares in specific banks. While we expect super-regional organizations to fill in some of the vacuum left by the global players, we believe that super-regionals are creating their own unique propositions as truly Asia-centric powerhouses."

Araneta concludes, "Technology vendors should consider the rise of super-regionals as an important trend, not only because of the potentially huge uplift in IT budgets but also because it will necessitate more 'regional' sales and marketing strategies. Vendor incumbents in other markets will have to build their presence and domain expertise in the super-regional's home base."

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(Source-IDC Financial Insights)

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