Asia-Pacific Financial Services Market to Leapfrog with Artificial Intelligence, Machine Learning and Growing Personalization, IDC Reports

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IDC Releases Asia/Pacific Ex-Japan Forecast for Financial Services and Payments 2022

SINGAPORE, March 10and2022 – IDC has released the Asia/Pacific* excluding Japan forecast for 2022 titled IDC FutureScape: Worldwide Financial Services and Payments 2022 Predictions — Asia/Pacific (Excluding Japan) Implications. Consumer behavior has been largely affected by the global pandemic. The perception of financial services and payments in particular has changed its normal course. As the industry is poised for further disruption, technological innovation and the inclination towards “all digital” will accelerate rapidly and remain transformational. With this, we can say that financial services and payments in the Asia/Pacific region are in a good mood to develop their basic digital capacities in order to transform not only the core business, but also to add value in new frontiers.

“Given SWIFT’s modernization push, many banks in the region will be forced to revamp their downstream applications to reap the expected benefits of accelerating process automation and expanding AIML capabilities in Payments and Trade Operations,” Ganesh Vasudevan, Research Director, IDC Financial Insights.

Now, in the Asia-Pacific ex-Japan (APeJ) financial services industry, insurance is playing a major role in disrupting existing industry norms related to products and services, and it’s happening virtually everywhere. the links in the value chain. One of these innovations on our way is preventative insurance and, with the APeJ in mind, the health segment is a major axis of change, mainly due to the aging of the population in the region. Growing innovation in connected devices, developments in artificial intelligence and machine learning algorithms accompanied by excellent analytics are paving the way for insurers to be more ready for the market and offer products that are preventative in nature , helping consumers reduce insured risks. Some of the great examples related to intelligent insurance fraud monitoring, effective claims management and risk monitoring and these areas of innovation will not only be a game-changer in healthcare but will affect also segments like cyber, life, automotive and many more. other emerging business risks.

IDC Financial Insights Financial Services and Payments Forecast provides insight into how the financial services and payments space in Asia-Pacific, excluding Japan, will shape in 2022. The predictions also imply the upcoming digital advancements the industry is likely to witness, especially after a period of recovery alongside growing post-pandemic opportunities. Here are the top 10 financial services and payments forecasts for 2022 that will impact all market stakeholders, including next-gen fintech consumers, investors, and major players in the Asia-Pacific region.

#1: AML for social good – As regulators and social pressures increase, by 2025 50% of banks will implement AI-based AML models to better detect patterns of human trafficking and other high-value illicit activities. social impact.

#2: AI is shaping the banking experience – By 2024, 40% of APEJ banks will use AI-based sentiment analysis to improve customer experience on current and future products and services.

#3: Analytics in the Cloud – By 2025, 50% of Tier 1 banks in Asia/Pacific globally will deploy their data warehouses and analytics operations in the cloud.

#4: Trade finance – The massive change brought by current and upcoming versions of SWIFT will force the replacement of legacy trade finance systems, 75% of which will be cloud-based by 2026.

#5: Preventive insurance – By 2024, 75% of insurers will offer real-time risk prevention as a service to their retail customers, both life and non-life, either directly or through digital partnership ecosystems.

#6: Credible Fintech – By 2023, fintech market consolidation will continue with at least 25% of leading fintech acquired and another 50% failing due to lack of scale.

#7: AI in payments – By 2026, 50% of APEJ payments will be optimized using AI-derived routing models.

#8: Buy now, pay later – By 2024, 75% of consumers across all channels will try an instant funding option.

#9: Real-Time Payments – By 2026, real-time payments will capture 50% of APEJ’s payment volume, including cross-border transactions.

#10: Responsible personalization – By 2023, 80% of APEJ banks will use relevant and responsible personalization as a key weapon of differentiation to build customer loyalty.

“Customers as a whole are showing rapid adoption and use of all things digital. For the financial services segment, the nature of customer interactions will change and will be more focused on recommendations and advice. Many institutions will accelerate personalization, real-time, and predictive capabilities to better serve the customer.However, the critical first step must be taken to understand how customers have changed and recognize new habits, preferences, feelings, and expectations of a increasingly digital customer,” concludes Michael Araneta, associate vice president, IDC Financial Insights.

These predictions are discussed in more detail in the recent IDC FutureScape report, IDC FutureScape: Worldwide Financial Services and Payments 2022 Predictions — Asia/Pacific (Excluding Japan) Implications (IDC #AP47255321). Each year, IDC releases its best predictions through its IDC FutureScape reports to provide a comprehensive view of what lies ahead for the rapidly changing ICT industry. These predictions have been used to shape the strategies and business goals of technology leaders and business executives over the next 1-5 years. To learn more about upcoming IDC FutureScape reports, please click HERE.

Don’t miss IDC’s upcoming Asian Financial Services Congress 2022 (AFSC 2022), where keynote speaker Michael Araneta discusses how the region’s top financial institutions are poised to post spectacular performance in 2022, clearly stepping out of the unfavorable conditions of the past. two years. Register now and enter the AFSC’s Financial Insights and Innovation Awards (FIIA), which recognize outstanding achievement in the financial industry for using technology to enable them to achieve more together. FIIA winners will be announced on 23rd from March 2022.

For any business inquiries on an IDC FutureScapes document, please contact your IDC Account Manager or Sheryl Fuertez at [email protected] For media inquiries, please contact Tessa Rago [email protected] or Alvin Afuang [email protected]

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About IDC Financial Insights

IDC Financial Insights helps financial services companies and IT managers, and the vendors that serve them, make more effective technology decisions by providing accurate, timely, and insightful fact-based research and advisory services. Comprised of senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing the banking, insurance, securities and investment industries. International Data Corporation (IDC) is the world’s leading provider of business information, consulting services and events for the information technology market. IDC is a subsidiary of IDG, the global leader in technology, media, research and events.

About IDC FutureScape

IDC FutureScape reports are used to shape enterprise IT strategy and planning by providing a basic framework for evaluating IT initiatives in terms of value for current business strategy and for the foreseeable future. IDC’s FutureScapes are comprised of a set of decision imperatives designed to identify a series of outstanding issues that CIOs and senior technology professionals will face in a typical business planning cycle. 3 years old.

About IDC

International Data Corporation (IDC) is the world’s leading provider of business information, consulting services and events for the information technology, telecommunications and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in more than 110 countries. IDC’s analysis and insight helps IT professionals, business executives, and the investment community make fact-based technology decisions and achieve their key business goals. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the global leader in technology media, data and marketing services. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDCAP and LinkedIn. Subscribe to the IDC-Blog for industry news and insights.

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