Photo - Ho Sui-Jon, Market Analyst for IDC Financial Insights.
IDC Financial Insights has predicted that the continued disruption in the channel space will breed new challenges for the Malaysian banks to mature its market propositions next year.
Speaking at the research firm's inaugural Financial Services Summit 2015 in Kuala Lumpur, IDC Financial Insights market analyst Ho Sui-Jon said 2016 will see a battle of big ideas in the financial services sectors of the ASEAN region.
To make gains in the Malaysian market, financial institutions will have to quickly act on disparate and occasionally conflicting priorities, especially in:
- Succeeding in the two-speed market for financial services: maintaining growth amid slowing market for traditional deposit-taking and lending, but gaining first-mover advantage in new lines of business
- Balancing the risks of pursuing innovation and generating new revenue sources
- Fighting back against market disruptors, while being disruptors themselves
- Ensuring current infrastructure will integrate with new channels and channel types
- Preparing channels and payments offerings, for the emergence of channels that have not even been conceived in 2016
- Decoding customer preferences before the customers know what exactly they want
Earlier this year, IDC Financial Insights also opined that the payments revenues from traditional business lines within the bank will shrink by 15 percent leading up to 2020.
"Fulfilling the omni-channel mandate lies in ensuring the same level of service quality and product sophistication can be successfully conveyed over all channels within the bank. In Malaysia, we expect this to be represented by banks playing a larger role in their cross-industry partnerships," said Ho.
He said that this will prove to be a 'particularly significant shift in business posture, as banks begin to co-develop value propositions with key verticals, notably telecommunication service providers and retailers.'
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