72% of Asia/Pacific Banks Expect Higher Profitability in 2012, reports IDC Financial Insights

Kuala Lumpur – February 23, 2012 – Regional lenders continue to remain upbeat on 2012 growth prospects due to new opportunities in Asia. A survey conducted by IDC Financial Insights of 127 senior decision makers across Asia/Pacific revealed that 72% of these lenders expect revenues to grow by up to 10% this year. Meanwhile, 12% predict growth to surpass 10%, altogether lending much optimism to the region’s banking outlook for 2012. The survey was conducted today, at Day One of IDC Financial Insights' Eighth Asian Financial Services (AFS) Congress held at the Marina Bay Sands in Singapore.

Michael Araneta, Associate Consulting and Research Director at IDC Financial Insights Asia/Pacific says, "Financial institutions across Asia/Pacific have to look at uniquely Asian opportunities for sustainable growth. Specifically, these are opportunities that do not rely on the performance of their European or U.S. counterparts or the western economic position. Such opportunities are still abundant, brought about by governments identifying new priority industries such as aerospace and defense in Singapore, green technology in China, and hi-tech segments in Taiwan and China. IDC Financial Insights also identified several Asian corporations that are seeking business beyond their home markets, and are thus prospective targets for the corporate banking units of domestic banks.”

Still, respondents have identified the Eurozone crisis, dependence on western trade, and over-regulation as the three main threats that will impede the region's growth momentum in 2012. As banks seek to expand their reach and profitability, two strategic technology initiatives have been identified -- risk management and channel efficiency.

The focus on risk management has been brought on by the growing availability and sophistication of analytics technologies, combined with hardening regulatory mandates of unanimously apprehensive governments. Emphasis on channel efficiency, on the other hand, stems from the mobility explosion that is sweeping across the region. The alternative avenues to reach target market segments have been multiplying several-fold, pressuring the internal operational infrastructures of banks to keep pace.

Organized by IDC Financial Insights, the AFS Congress brings together leading financial practitioners from across the region every year to deliberate on the pressing economic and business developments sweeping across the global financial markets. More than 700 delegates turned up today, underscoring the urgency of topics set to be discussed throughout the Congress.

The Asian Financial Services (AFS) Congress is currently taking place at the Marina Bay Sands Singapore. It will end tomorrow with the announcement of the most innovative strategic IT projects that drive business differentiation in Asia/Pacific financial institutions.