Published on the 03/09/2012 | Written by Newsdesk
According to new research, IT spending by the global wealth management industry will reach almost USD$35bn by 2016, and will include heavy investment in digital channels…
Between 2011 and 2016 the Asia-Pacific region will increase its IT spend by a compound annual growth rate of 8.5 per cent, with China’s investment reaching US$1.78bn and Japan reaching US$1.33bn according to forecasts- from the global analyst Ovum.
“Increasing profitability is a priority for all financial institutions,” says Jaroslaw Knapik, senior analyst, financial services technology, Ovum. “As the use of digital channels increases, banks will strengthen their focus on mobile channels and self-service functionality in an effort to connect and empower their customers.”
The growth in IT spending by wealth management institutions will give rise to more personal financial management tools offered to customers. Increased support for smartphones and tablets will be driven largely by investment from non-financial institutions, as well as the recent advances made in mobile finance platform technology. Ovum forecasts that investment in internet and presence technologies by APAC’s high net worth banking and financial planning businesses will reach US$150m, while retail brokerage and retail asset management organisations will increase their investment to US$135m and US$73m, respectively.
“Customer attitude toward banks has changed greatly as a result of the financial crisis,” says Knapik. “Increasingly, digital channels are being developed to improve customer loyalty and cross-selling opportunities but also to lower servicing costs.”
“While the economy is recovering, organisations should be focusing on the opportunity to increase revenue and improve trust among customers. This, coupled with the increased investment in personal finance management tools, will enable more self-management and closer monitoring of financial assets, helping to increase overall knowledge of finance management.”
