54% of Asia/Pacific Financial Institutions Expect To See Revenue Growth Of Over 10% in 2011, says IDC Financial Insights
According to results from a survey of senior decision makers representing 136 unique financial institutions across Asia/Pacific, political unrest, inflation and IT security are the top three threats identified as the main inhibitors of revenue growth in the financial services industry (FSI) this year.
The findings of the survey also reaffirmed IDC Financial Insights’ prediction that the economic center of gravity is shifting towards the Asia/Pacific region. 54% of the respondents are expecting high growth of over 10% in revenues from Asia/Pacific financial institutions in 2011. 46% are expecting medium growth of between 3%-10%. None of the respondents surveyed expect low or no growth.
Keith Lam, Associate Market Analyst for IDC Financial Insights Asia/Pacific remarks, "Banks in Asia are set to reap the rewards of the strong financial capital and liquidity that they have wisely built over the years. With the economy out of recession and businesses running at full capacity, 2011 will see strong financial performance among the region's financial institutions. However, rising interest rates, inflation issues as well as political unrest need to be resolved quickly so that they don't derail the momentum in the industry."
Key issues identified include:
* Technology risks are unlike any other risk. When core banking systems fail and customers cannot access their accounts, the bank's business operations instantly come to a standstill. The impact on customers is immediate and the consequences widespread.
* Asia has overtaken the economic dominance from the West. In terms of nominal GDP, ASEAN ranks as the 9th largest economy in the world or the 3rd largest in Asia.
* Asia will account for nearly 40% of global trade by 2028 and shifting trade patterns will create a change in trade finance and transaction banking requirements. The move will generate opportunities for new products and services, ultimately triggering a rise in transaction volumes.
(Source: Press Release of IDC of February 24, 2011)
CLICK FOR MORE FEATURES & STORIES