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FSIs continue to embark on digital transformation projects despite risks: IDC

Nayela Deeba | Aug. 25, 2016
Despite risks, FSIs are embarking on projects focusing on MSMEs and financial inclusion, process optimisation and big data.

Micro, small and medium enterprises (MSMEs) and financial inclusion, process optimisation and big data showed the strongest performance in technological maturity and business outcomes, according to IDC Financial Insights' 2016 Innovator's Handbook.

"Risk correlates with how much variation is observed in project outcomes. Channel digitalisation, technology service delivery and enterprise transformation have been the riskiest domains to pursue in the last three years," said Sui-Jon Ho, the Program Director for IDC's Financial Insights Innovation Awards (FIIA).

"Yet, risk is not necessarily unfavorable. Strong 'upside risk', as observed in Micro, SME and Financial Inclusion, Process Optimisation, and Big Data, is attributable to the presence of industry champions that significantly outperform an otherwise stagnant market," Ho added.

This new report aims to provide decision-makers with a detailed benchmark of Asia Pacific's principal areas of technology and business innovation through scoring the outcomes of flagship IT-centric projects based on six parameters. The parameters include use of technology, response to market need, effectiveness of implementation, market impact and user impact.

The handbook is based on findings from more than 300 flagship projects by financial institutions between 2014 and 2016. Evaluation of each case study is cross examined and evaluated by a team of external industry practicioners in order to create a holistic view of the regional market

"Digital transformation continues to top the agendas of Asia's financial institutions, yet the lack of precedents in the industry for these new areas of spending results in the 'price of innovation' remaining largely unknown. 

IDC's syndicated research,in addition to end-user visibility afforded by the FIIA program allows our analysts to distill the myriad business cases for technology and identify fundamentals shared by the most successful of projects," said Ho.


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