IDC Financial Insights: Predictions for 2012 for Financial Services

IDC has released its IDC Financial Insights' Predictions for 2012.  The December 6, 2011 annual predictions conference call was marred by technical problems, but the IDC team went ahead and recorded the webinar portion.  The recording will be available on the IDC Predictions website and has been loaded to You Tube, here and is also embedded below.

This was a global predictions call and was focused broadly on all types of financial services.  There are also other calls coming up that focus on regional predictions in both Europe and Asia as well as calls specific to sub-industries within Financial Services.  

Leading this conference call was David Potterton, Vice President of Global Research.  Other IDC Financial Insights team members on the call were Jeanne Capachin, Marc DeCastro, Karen Massey, Aaron McPherson, John O'Brien, Sean O'Dowd, and Michael Versace.

Summary

The IDC Financial Insights team started off the predictions by saying there are going to be four main themes in 2012. 

  1. Meeting regulatory and compliance requirements.
  2. Improving the cross-channel experience
  3. Improving operational cost efficiencies
  4. Improving revenue generation 

The Ten Predictions

The 2012 predictions list below was sourced from the conference call slides.

  1. IT Spending Growth. “Tumultuous financial markets, failing institutions, and lower profits in Europe and the U.S. will inhibit, but not eliminate, IT spending growth.”
  2. Channel Mix. “Financial institutions struggle to harness the right channel mix for an optimum customer experience.” 
  3. New Business Models. “Financial institutions will see the need to develop a new business model, but execution will elude the industry.”
  4. Revenue Generation. “Revenue-generation continues to be a major challenge in 2012 as financial institutions explore new pricing options enabled by technology.”
  5. Reliability of IT. “IT reliability becomes a major risk factor due to the age and complexity of key systems.”
  6. Mobile Payments. “Financial institutions will generate less than 10% of total mobile payments.”
  7. Operational Efficiency. “Financial institutions will continue to tackle operational efficiencies and will target average cost income ratios of 40%.”
  8. Risk Management. “Risk management will top US$60B and 15% of total IT investments across WW financial services.”
  9. Social Media. “Financial institutions will use social media to improve decision making and drive financial results.”
  10. Big Data Analytics. “Over 40% of all tier 1 banking and capital market firms gear up to execute big data / analytics business and technology strategies.”

Webinar Recording via YouTube

 

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