China’s financial industry has basically completed its market-oriented interest rate reform while market-oriented fee rate mechanisms are taking shape in the insurance industry. This will put forward higher requirements for service and product innovations in the financial industry.
IDC expects Digital Transformation (DX) to be inevitable for China’s financial industry. Third platform technologies such as big data/analytics, cloud, mobility and social business and the six innovation accelerating technologies based on it, including robotics, 3D printing, virtual/augmented reality (VR/AR), Internet of Things (IoT), cognitive systems, and next-generation security, will enable financial services companies to transform their business processes.
The 2016 China Financial Industry Transformation and Innovation Summit & Awarding Ceremony, organised by IDC China in Beijing discussed the opportunities and challenges for China’s financial industry in digital transformation.
During the event, Agricultural Bank of China shared their views on how science and technology drives innovation in China’s financial industry. Cyrus Daruwala, MD of IDC Financial Insights, took a global perspective on the development trends of the financial industry and the importance of Digital Transformation.
At the forum, IDC announced the winners of “2016 China Financial Industry Innovation Awards”. The awards recognize the successful application of innovation technologies in the financial industry. Awards were given to 21 technology buyers and their organisations, including Agricultural Bank of China, China Minsheng Bank, China Everbright Bank, Bohai Bank, Bank of Beijing, Bank of Jiangsu, China Zheshang Bank, WeBank, Guangdong Huaxing Bank, Qilu Bank, and Bank of Lanzhou. Among the winners, Agricultural Bank of China came home with the Highest Innovation Award for its new-generation core business system (BoEing).
At the forum, IDC also released the annual China Banking & Insurance Industry IT Solution Market Shares Research Reports and Forecast Research reports. The report shows that the IT solution market in China’s banking industry continued to maintain a good momentum of stable growth in 2015, with a size passing the RMB20-billion mark to hit RMB22,5-billion (around $3,4-billion), up by 23,5% from 2014. IDC forecasts that the market will have a CAGR of 21,9% from 2016 to 2020, reaching a size of RMB61,2-billion (around $9,1-billion) by 2020.
According to Frank Fang, senior research manager at IDC China: “China’s banking industry is facing the 3 major challenges of macroeconomic decline, market-oriented interest rate reform and Internet finance. The business environment of the industry is undergoing profound changes. The IT solution market in China’s banking industry will enter a period of integration, while continuing to maintain a stable growth momentum.
“IT solution providers must continue to accumulate expertise and improve their specialised service abilities, as well as refined management and standardised management in order to meet financial users’ innovation demand.”
