Battle of BIG IDEAS Expected in Financial Services Sectors 2016- IDC

International Data Corporations (IDC) Financial Insights hosted its inaugural Financial Services Summit 2015 in Kuala Lumpur recently.

Themed ‘Delivering on BIG Ideas’, IDC Financial Insights believes 2016 will see a battle of big ideas in the financial services sectors of the ASEAN region. Financial institutions aiming to make gains in the Malaysian market will have to quickly act on disparate and occasionally conflicting priorities, especially in:

Succeeding in the two-speed market for financial services: maintaining growth amid slowing market for traditional deposit-taking and lending, but gaining first-mover advantage in new lines of business.

.Balancing the risks of pursuing innovation and generating new revenue sources

.Fighting back against market disruptors, while being disruptors themselves

.Ensuring current infrastructure will integrate with new channels and channel types

.Preparing channels and payments offerings, for the emergence of channels that have not even been conceived in 2016

.Decoding customer preferences before the customers know what exactly they want

IDC Financial Insights also predicted that the continued disruption in the channel space will breed new challenges for the Malaysian bank to mature its market propositions.

“Fulfilling the omni-channel mandate lies in ensuring the same level of service quality and product sophistication can be successfully conveyed over all channels within the bank. In Malaysia, we expect this to be represented by banks playing a larger role in their cross-industry partnerships,” explained Ho Sui-Jon, Market Analyst for IDC Financial Insights.

Ho added that this will prove to be a particularly significant shift in business posture, as banks begin to co-develop value propositions with key verticals, notably telecommunication service providers and retailers.

Earlier this year, IDC Financial Insights stated that the payments revenues from traditional business lines within the bank will shrink by 15% leading up to 2020. This principal conversation was pointed out in the Malaysian Financial Services Summit affirming this stance to a large extent, as financial services industry renew their resolution to champion offerings going beyond simple fund intermediation.

This event gathered the industry leaders and practitioners from financial sector who shared their best practices and provided insights on the disruption of financial services in Malaysia.

IDC Financial Insights assists financial service businesses and IT leaders, as well as the suppliers who serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services.

Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing the banking, insurance, and securities and investments industries.

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