Market Analysis: Core Banking in Asia/Pacific - 2008 Deals

This Financial Insights report examines the core banking environment for Asia/Pacific (APAC) in 2008. The continued evolution and maturity of the core banking landscape in the region did not lead to any significant change in the number of core banking deals in 2008. Asia's financial institutions are currently seeking to balance the need to control costs in this difficult economic environment while still making the necessary core banking investments to maintain a competitive edge in their markets.

Abhishek Kumar, senior research analyst, Asia/Pacific IT Benchmarking Service, states, "There has been a slight increase in the number of core banking deals in the Asia/Pacific region for 2008, and this further validates Financial Insights' statement in last year's report on the continuing evolution of the core banking market in the region." With the economic crisis worsening throughout 2008 and into 2009, Kumar lists some expectations for the core banking market in 2009. "As with 2008, we do not expect any significant increases in the number of core banking deals in 2009. However, single product or module-related deals are beginning to represent a larger portion of the core banking landscape, with financial institutions seeking to bolster existing solutions and expand their scope of business to tap additional revenue streams." Kumar concludes, "Core banking will undoubtedly continue to be of high strategic importance to financial institutions. To those banks that have not made this investment yet, we strongly recommend they do not prioritize cost cutting over making such necessary investments."