Asian Financial Services

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 subsidiary 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 subsidiary 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 subsidiary 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 subsidiary 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 Hua Zhang,  Neil Katkov, PhD, 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 subsidiary 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 Hua Zhang,  Neil Katkov, PhD, 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 subsidiary 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.

ITmedia Enterprise Solution Seminar Japan 2017

: Tokyo, Japan
: March 15, 2017
: Eiichiro Yanagawa, Asian Financial Services, Global Financial Services
Asia-Pacific

Case study seminar on legacy modernization for large scale enterprises including Financial Industry.

Tokyo Financial Information & Technology Summit

: Tokyo
: April 26, 2017
: Eiichiro Yanagawa, Banking, Asian Financial Services, Global Financial Services, Insurance, Securities & Investments
Asia-Pacific

Now in its 8th edition, the summit will gather regulators, financial institutions and leading data and technology vendors to provide the insights you need to navigate the unique challenges of Japan's financial markets.

by Michael Fitzgerald, March 2, 2017
Industry Trends
Global

Abstract

Celent invited innovation professionals from financial services firms to provide their outlook for 2017 in an online survey. The participants are all innovation practitioners who bring a current and practical perspective to their predictions. Their feedback is valuable for financial services leaders who want to benchmark and advance the innovation capabilities in their firms.

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 subsidiary 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

Program Benchmarks

2

2017 Outlook

5

 

Business Drivers

5

 

Innovation Investments

6

Path Forward

9

Conclusion

11

Appendix — Survey Demographics

12

Leveraging Celent’s Expertise

14

 

Support for Financial Institutions

14

 

Support for Vendors

14

Related Celent Research

15

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