SINGAPORE and HONG KONG: Independent research and advisory firm Financial Insights, said the release of a report that assesses opportunities for banks in the current crisis environment. It highlights pockets of growth in lending in several Asia/Pacific markets, shifts in customer deposits which allow aggressive banks to gain market share, and opportunities for generating fee income. More insights are revealed in this new study, "Asia/Pacific Banking in 2009: Opportunities Amid A Crisis."
1. Even before the escalation of the financial crisis, Asia/Pacific banks were already projecting a slowdown in lending for 2009. Financial Insights have revised downwards the estimated average loan growth for 12 key Asia/Pacific markets to 8.7%. However, there are still significant drivers for lending growth that need to be considered. These include government mandates and interventions, dwindling international funding options, microfinance, and moves by aggressive players to win market share from weakened rivals. |
''A thorough review of the market reveals some opportunities for revenue growth, and for further expansion of customer base and product portfolios despite the economic crisis,'' remarks Michael Araneta, Senior Research Manager, Financial Insights Asia/Pacific. ''The environment however is by no means bright and rosy, and significant risks need to be considered. Market conditions are volatile, causing opportunities to shift quickly. The game will be won by those agile and capable enough to execute strategies efficiently,'' Araneta continues.
The IDC company notes that banks' strategic IT initiatives have been realigned to reflect the opportunities in the market. Despite tight budgets, banks will still spend on technologies that allow them to blunt the adverse effects of the crisis, build business despite the slowdown, and operate efficiently in a crisis environment. For example, while banks need to continue investing in origination solutions for loan expansion, they also need to invest strategically in modeling and analytics. Investments in scoring, modeling, and analytics will help in key areas such as decisioning, pricing, servicing, fraud prevention, and even collections and recovery.