Asian Financial Services

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.

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 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

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

by Eiichiro Yanagawa, February 22, 2017
Industry Trends
Asia-Pacific

Abstract

Legacy modernization in the securities industry is much more than the application of novel technology. Rather, it portends nothing less than a structural overhaul. It is an opportunity to envisage anew and redefine the industry’s future.

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

 

Definitions

2

Legacy Modernization in the Securities Industry

3

Securities Industry Core Systems: An Overview

4

 

Customer-Facing Systems

5

 

Market-Facing Systems

7

Why Modernize?

10

What Does It Mean to Modernize a Core System?

12

 

Trading Lifecycle Optimization (TLO)

12

 

Enhanced Risk Management: Realizing a Dynamic Risk-Adjusted Investment Cycle

14

Five Approaches to Modernization

18

 

New Technology and the Need for an External Perspective

18

Celent’s Recommendations

20

 

Digital Financial Services and Legacy Modernization

20

 

Diversification of Technology Sourcing Models

21

 

Legacy Modernization Framework

22

Proposals for Japanese Securities Firms

25

 

Landscape and Targeting

25

 

The IBOR Option

25

 

Modernization that Avoids Recreating Legacy Issues

26

Digital Transformation of the Securities Industry

31

 

Modularization of Industry

31

 

The Securities Industry of the Future

32

 

The Role of New Technology

33

 

In Conclusion

34

Leveraging Celent’s Expertise

35

 

Support for Financial Institutions

35

 

Support for Vendors

35

Related Celent Research

36

by Eiichiro Yanagawa, February 22, 2017
Industry Trends
Asia-Pacific

Abstract

Japan’s securities industry finds itself in a fairly unique situation in terms of modernization, one which most companies might liken to a ship leaving port on a voyage without navigational charts to guide them. Unfortunately, the results of the Japan securities firm survey only serve to reinforce this assessment.

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

 

Definitions

1

Introduction: Global Trends

2

 

Harnessing Technology: Big Data and Analytics

3

 

Sourcing Model Innovation

4

The Japanese Securities Industry

6

 

Overview

6

 

Buy Side

7

 

Sell Side

11

 

Changing Systems Environment

17

 

Securities IT Services

18

Legacy Modernization Survey 2015 Overview

20

 

Survey Items

20

 

Overview of Survey Participants

20

The State of Modernization

22

 

System Replacement Goals and Strategies

22

 

Replacement Project Consideration

23

 

Challenges and Vendor Expectations

28

Business Case Perspectives

30

 

Legacy System Impacts and Merits of Modernization

30

 

Role of Business Cases

31

 

Changes in Cost Allocation

33

New Technology Adoption and Its Impact on Modernization

36

 

Challenges in the IT Arena

36

 

IT Unit Assessment

37

 

Changes in Division of Labor Between IT and Business Units

38

State of the Industry

39

 

Legacy System Modernization at Japan’s Securities Firms

39

Toward Part 2

40

Appendix

41

 

Respondent Profile

41

Leveraging Celent’s Expertise

43

 

Support for Financial Institutions

43

 

Support for Vendors

43

Related Celent Research

44

REPORT PREVIOUSLY PUBLISHED BY OLIVER WYMAN
February 13, 2017
Industry Trends
Global, Asia-Pacific, EMEA, Latin America, North America

Abstract

As digital technologies change how people live and work, financial services firms need to choose how they will adapt to a broadly reordered marketplace.

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

by Hua Zhang, January 30, 2017
Industry Trends
Asia-Pacific

Abstract

By 2020, 60% of systems in China’s banking industry will be deployed in the cloud.

Celent has released a new report titled Cloud-Based Banking in China: Creating a Technology Framework for Innovation. The report was written by Hua Zhang, 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 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

Introduction

3

Utilizing the Cloud to Construct Ubiquitous Banking Channels

5

 

Agriculture, Rural, and Farmer Services

5

 

Integrated Service Platforms Targeted at Small and Micro Enterprises

5

 

E-Commerce Services

6

 

Case Study: Micro Cloud Services of Qingdao Rural Commercial Bank

6

Data-Based Business System

10

 

Profile of MYbank

10

 

Business Models of MYbank

10

 

Technical Framework of MYbank

10

 

Operating Results of MYbank

12

Ali Finance Cloud

13

 

Case Study: Wujiang Rural Commercial Bank

13

Conclusion

14

Leveraging Celent’s Expertise

15

 

Support for Financial Institutions

15

 

Support for Vendors

15

Related Celent Research

16

by KyongSun Kong, December 30, 2016
Vendor Reviews
Asia-Pacific

Abstract

Celent has released a new report titled Claims System Vendors: APAC P&C Insurance 2016. The report was written by KyongSun Kong, an Analyst with Celent’s Insurance 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 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

Introduction

2

Core Claims Systems: Definition and Functionality

5

Report Methodology

11

Duck Creek Technologies LLC: Duck Creek Claims

12

EIS Group, Inc.: ClaimCore

19

Fadata EOOD: INSIS Claims

24

Guidewire Software Inc.: Guidewire ClaimCenter

30

Majesco: Majesco Claims

38

NIIT Insurance Technologies Limited: Advantage Suite Navigator 

44

SAP SE: SAP Claims Management

49

Sinosoft Co., Ltd.: General Claims Management System

54

Tata Consultancy Services: TCS BaNCS for Insurance

60

TIA Technology A/S: TIA Claims Solution

68

Concluding Thoughts

73

Leveraging Celent’s Expertise

74

 

Support for Financial Institutions

74

 

Support for Vendors

74

Related Celent Research

75

Asia-Pacific

Abstract

Asia-Pacific insurers are seeking to go more digital in terms of customer-facing and agent-facing components. How well can today’s PAS support insurers’ digital strategies?

APAC life insurers are increasingly satisfied with their vendors’ implementation capabilities, but this is not the case for P&C insurers. This webinar includes findings from both vendors’ and insurers’ perspectives. KyongSun Kong presents APAC insurance policy admin systems from various angles.

Asia-Pacific

Abstract

Asia-Pacific insurers are seeking to go more digital in terms of customer-facing and agent-facing components. How well can today’s PAS support insurers’ digital strategies?

APAC life insurers are increasingly satisfied with their vendors’ implementation capabilities, but this is not the case for P&C insurers. This webinar includes findings from both vendors’ and insurers’ perspectives. KyongSun Kong presents APAC insurance policy admin systems from various angles.

Asia-Pacific

Abstract

Celent Senior Analyst Eiichiro Yanagawa focuses on the burgeoning robo advisor industry and the unique attributes of Japan’s market. He explores pioneering robo advisor efforts, technology, business areas ripe for development, and the outlook for the fintech boom. Special attention will be paid to:

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