IT Spending Trends in the Japanese Banking Industry 2011

by KyongSun Kong, September 7, 2011
Operations/ Benchmarking
Asia-Pacific

Abstract

Just as Japan's banking industry seemed to be turning a corner from the 2008 financial crisis, the Great East Japan Earthquake struck, injecting an element of uncertainty. However, Japan’s banking industry has been formulating new strategies for growth.

In a new report, IT Spending Trends in the Japanese Banking Industry 2011, Celent examines IT investment patterns based on business trends in Japan’s banking industry. Celent forecasts that technology investments by Japanese banks will remain largely flat over the middle term, hovering around US$20.4 billion from fiscal 2011 through fiscal 2015 for a compound annual growth rate of 0.19%. The factors which will flatten IT spending of Japanese banking industry include stagnation of the Japanese economy and Japanese banking industry and a requirement for high cost efficiency.

“While no major growth in IT spending is foreseen for the banking industry, the sector is positive about harnessing new technologies, focusing attention on changes in spending patterns,” says KyongSun Kong, an analyst with Celent's Asian Financial Services group and author of the report.

In this report, Celent analyzes market and IT trends in the Japanese banking industry, and offers proposals and strategies to help banks and vendors capitalize on these trends in the 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 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

3

Definitions of IT Spending

5

Japanese Banking Industry Environment

7

Business Trends in the Banking Industry

9

 

Multichannel Approach

9

 

Online Banking for Corporate Clients

9

 

Enhancing Risk Management

10

 

Enhancing Transaction Banking Businesses

10

Banking Industry IT Trends

11

 

Enhancing Risk Management Tools

11

 

Promoting Shared Systems

11

 

Enhancing Cloud Computing

12

 

Enhancing Transaction Banking Systems

12

 

Enhancing Mobile Tools

12

IT Spending Trends in the Japanese Banking Industry

13

Conclusions

20

 

Proposals for Banks

20

 

Proposals for Vendors

21

Leveraging Celent’s Expertise

22

 

Support for Financial Institutions

22

 

Support for Vendors

22

Related Celent Research

23

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