China's banking industry IT solutions market is expected to register a compound annual growth rate of 21.9 percent over the next five years. As banks embark on digital transformation to remain competitive, the market is to hit US$9.2 billion in 2020.
Despite a 23.5 percent growth in 2015 from a year earlier to reach US$3.4 billion, the China banking IT solutions market remains highly fragmented, according to China Banking Industry IT Solutions Market Share Report and China Banking Industry IT Solutions Market Forecasts released by IDC recently.
China's banking IT solutions market is entering a period of consolidation, IDC said in a press statement (25 August 2016).
China's banking industry is facing the challenges of an economic slowdown, interest rate liberalisation and internet finance, while banks' operational environment is undergoing profound changes. Digital transformation is the only way the banking industry can thrive going forward.
As traditional banks keep improving client management, their demands on IT solutions providers are changing as well. IT solutions providers should keep improving their professional experience and specialised service abilities to cater to their financial customers' fresh demands for innovation.
As the interest rate liberalisation reform deepens, traditional banks are reforming and redesigning their IT infrastructures. IT engineers have to rethink business procedures and business models, to create a new set of information systems adapted to the ongoing reform.
Therefore, generally, the banking industry is investing in product and service innovations, and strengthening compliance and risk control. The investment in hardware is dwindling.
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