IDC Financial Insights held its IDC Insights Predictions 2010: Financial Services conference call today. The conference call featured many leading IDC analysts as the call flowed through the ten predictions.
The overall message was that although the industry outlook looks brighter than it did a year ago, IDC says the industry will continue to face challenges as it addresses lingering issues from the past 24 months. Heading this list of issues is restoring trust and confidence back to the financial sector. Financial institutions that place their focus on customer wants and needs will restore that trust and confidence sooner.
Here’s a summary of the top 10 predictions:
- Globally, the number of banking institutions will shrink by 4%. Failures, M&A, and consolidation activity will drive this.
- Delivery is King: Winning banks will focus on delivering information back to the customer. Single customer view across multiple channels is a must.
- Risk, compliance and regulation will continue to consume the resources of financial institutions. Expect a focus on aggregated views of all types of risks from across the entire institution
- Banks will redefine their business models seeking profitability: Expect a continued focus on infrastructure simplification and consolidation
- Capital market financial regulation and reporting more bark than bite. However, expect increased reporting requirements
- Second-and third-tier capital market firms rise in importance and sophistication. Expect these firms to increase their technology spending in an effort to differentiate themselves.
- The revolution in how we communicate finally hits insurers full force. Expect a continued investment in digital services and in distribution networks
- Insurers finally wring efficiency out of IT enterprise initiatives. Leading firms will reinvest savings back into IT and process improvements.
- Risk management data warehouse consolidation migrating to risk data integration. Firms will look to consolidate to unified data platforms as a means to deliver forward-looking, proactive risk analysis of transactions across the firm.
- FinTech industry consolidates further – main acquirers will be enterprise vendors. Look also for stronger alliances between tech vendors
As always, IDC put on a great predictions web-conference. On the call, the IDC analysts did a comprehensive job of pointing out differences by geographic market. The IDC team also allowed a good 15 minutes at the end of the call for Q&A.
For more information,
- See the Web Conference: IDC Insights Predictions 2010: Financial Services
- Get the report: Worldwide Financial Services 2010 Top 10 Predictions: Where to Next?
- IDC Financial Insights website www.idc-fi.com
- IDC Financial Insights online user community: http://idc-insights-community.com/financial
- IDC Financial Insights newsletter, "IDC Financial Insights on Financial Services." Click here to view online editions