EDITION
  • English
  • 中文
  • Bahasa
  • eCommerce
Tuesday, June 6, 2023
uLearnMoney Subscription Events
No Result
View All Result
Money Compass

EDITIONS:

Media and partner organizations:

cmc bmc ulearnmoney mylife mcm asncommerce mcm
  • HOME
  • NEWS
    • Global Market News
    • Local Market News
    • Corporate News
    • PLC News
  • SPECIAL FEATURE
  • COMPASS
    • Financial
    • Investment
    • Start Up
    • Capital
    • Infographics & Quotes
  • MONEY TUBE
  • LIFESTYLE
  • PR NEWSWIRE
Subscription Newsletter
Money Compass
  • HOME
  • NEWS
    • Global Market News
    • Local Market News
    • Corporate News
    • PLC News
  • SPECIAL FEATURE
  • COMPASS
    • Financial
    • Investment
    • Start Up
    • Capital
    • Infographics & Quotes
  • MONEY TUBE
  • LIFESTYLE
  • PR NEWSWIRE
No Result
View All Result
中文 Bahasa eCommerce
Money Compass

Majority of banks in Asia are running on outdated core banking technology

by moneycompass
July 30, 2020
in Global Market News
COVID-19, Asia, banks, lockdowns, flood, Moodys, Citigroup, branches
Share on FacebookShare on WhatsApp

KUALA LUMPUR – Some 95% of banks in Asia are using second and third generation banking technology, severely limiting their ability to innovate, while increasing their costs, according to a new report.

An International Data Corporation (IDC) sponsored report by Thought Machine entitled, “Digital Core — Now Is the Time” released on July 29 said with the average age of core banking technology in Asia at 20 or more years, the imposed technology gap for infrastructure is increasing banks Cost-to-Income (C/I) ratios by 3% – 5%.

The report said limited ability to automate processes and decisioning adds another 4% – 7% to the C/I ratio.

The report added that banks that are not ready to migrate to fourth generation organic digital core technologies are unlikely to meet their digitalisation objectives and will become vulnerable to acquisition by more digitally advanced banks in the next two to four years.

It said the major reasons banks are hesitant to replace and upgrade their core banking infrastructure to the fourth generation includes newly replaced core systems, resource constraints, and an (incorrect) assumption that digitalisation is fulfilled by the adoption of internet and mobile banking.

The report highlighted that while many banks are hesitating, several dynamic mid-sized banks are moving quickly in adopting fourth generation core banking systems.

It said these banks will experience true digital transformation, increased business productivity, adaptation without disruption and easy integration to external and internal systems.

The report said acceleration in digital transformation, opportunities to monetise IT assets, partnerships with challenger banks and fintechs, cost effectiveness of migrating to organic digital core platforms and risk of acquisition are the key drivers for banks across the region to replace their core banking today.

Thought Machine’s Singapore-based APAC managing director APAC Nick Wilde said the Asian banking sector is experiencing rapid and radical innovation.

“Technology is at the core of that innovation, especially cloud platforms, allowing new digital banks to be built with cloud technology from the ground up, providing reduced costs, increased flexibility and product innovation.

“That is putting pressure on incumbent banks, weighed down by outdated technology and rigid silos, to find solutions to help them stay in the game.

“Thought Machine enables financial institutions, neo banks and challengers in Asia to rethink core banking offerings, serve new market segments and bring hyper-personalised products to market with agility and scalability,” he said.

Meanwhile, IDC Financial Insights Associate Vice President Michael Araneta said financial service institutions need to prioritise core banking technology migration discussions, so that other initiatives like digital innovation, customer-centric offerings and personalisation can truly take centre stage in their future strategy.

 

Read more: Threat data is key to fend off future cyberattacks against banks in SEA

Tags: APACbankdigitalisationtechnology
ShareSendShareSendTweetShare
Previous Post

MagniProtect by Magniflex: the world’s first antiviral sleep collection tested against COVID-19 is Made in Italy

Next Post

Performing live on Kuaishou, Lang Lang comes back after 6-month hiatus

Related Posts

Global Market News

Kenanga: The Fed’s massive interest rate rise may continue to put pressure on the ringgit

09 Nov 2022
Global Market News

The ringgit opens higher on the prospect of China reopening, as markets rallied

09 Nov 2022
Ringgit/USdollar
Global Market News

Ringgit opens lower versus the US dollar

11 Oct 2022

Discussion about this post

MOST POPULAR

  • Startup World Cup 2023 Chengdu Regional was successfully held in Jingrong Town, Pidu District, Chengdu

    0 shares
    Share 0 Tweet 0
  • VUSE, PRINCIPAL PARTNER OF THE McLAREN FORMULA 1 TEAM, PARTNERS WITH A SAUDI FEMALE ARTIST TO LAUNCH ITS FIRST ARTIST RESIDENCY FOR UNDERREPRESENTED CREATIVES

    0 shares
    Share 0 Tweet 0
  • ASEAN Business Awards 2023 Registration Now Open: Showcasing Economic Progress in ASEAN

    0 shares
    Share 0 Tweet 0
  • Startup World Cup 2023 Chengdu Regional was successfully held in Jingrong Town, Pidu District, Chengdu

    0 shares
    Share 0 Tweet 0
  • LG JOINS RE100 INITIATIVE, COMMITTING TO TRANSITION TO RENEWABLE ENERGY

    0 shares
    Share 0 Tweet 0

MEMBERSHIP SUBSCRIPTION

Subscribe Now

Sign Up for Our Free Newsletters

Stay up-to-date with the latest personal wealth-related articles, breaking financial market news, and more.

Follow us on Social Media

News
Special Feature
Compass
Money Tube
Smart Lifestyle
Corporate Profile
Advertise
Subscriptions
Career
Contact Us
eLearning
Events
Privacy Policy
Terms of Use
Strategic Partners

Copyright © . Money Compass. All Rights Reserved.

Design and Development by Ant Internet Sdn Bhd

No Result
View All Result
  • HOME
  • NEWS
    • Global Market News
    • Local Market News
    • Corporate News
    • PLC News
  • SPECIAL FEATURE
  • COMPASS
    • Financial
    • Investment
    • Start Up
    • Capital
    • Infographics & Quotes
  • MONEY TUBE
  • LIFESTYLE
  • PR NEWSWIRE

© 2020 Money Compass

Career

SUBSCRIBE FREE NEWSLETTER