PR84391

SHENZHEN, China, June 15, 2020 /PRNewswire=KYODO JBN/ --

Recently, Huawei and International Data Corporation (IDC) jointly pre-release

their whitepaper on reshaping banking for the recovery era for 2020 during the

Huawei Global Financial Services Industry Summit 2020. The Whitepaper is

scheduled to publish globally in August. IDC believes that there will be five

key stages of recovery and at each stage there will be opportunities to

optimize new growth. The banking industry overall, stands in a strong position

to weather the stresses of 2020 and that it should bet utilize this time to

reinforce its overall capabilities and reassess priorities in terms of digital

transformation.

Banking to utilize technology to accelerate recovery

The year 2020 has witnessed unprecedented systemic shocks triggered by

COVID-19, but as with all other crises, both challenges and opportunities

arrive at the same time. The whitepaper will analyze the responses of banks to

the trials of current business conditions, dissecting the best responses from

across the world in terms of both tactical and strategic responses, and

establish a firm recovery framework that banks and other financial institutions

can adopt to position themselves to better reach and serve their customer needs

for the upcoming recovery phase.

IDC believes that the banking industry stands in a strong position to weather

the stresses of 2020 and that using this period to build further capabilities

and infrastructure in digital and data will enable them to create more relevant

services and products which are not just digitally managed and delivered, but

which have been born and incepted from digital roots.

Understanding the five key stages of recovery to optimize new growth

The IDC and Huawei whitepaper will map out the five key stages of recovery

based on IDC's observations, covering the stages of COVID crisis, economic

slow-down, recession, return to growth and next normal. For each of the stages,

IDC will map out the impact and characteristics of each, and IDC's recommended

direction and strategies that banks should implement in order to maximize the

potential benefits that can be attained.

Banks reacting to the COVID crisis and economic slow-down phase have already

rolled out a host of strategies including a focus on mobile app efficiency and

features, behavioral analytics to capture new customer activity and behaviors

during unusual times in order to rebuild models, and branch transformation to

better service customers in the absence of physical locations in areas such as

lending, further accelerating the transformation towards fully online banking products.

New capabilities and priorities already highly visible in the industry

The new capabilities the banks have equipped themselves with are in the context

of the unique characteristics of this 2020 downturn, but are also brought about

by the new technology and digital capabilities of our times.

For example, in the earlier stages of recovery, a real impact assessment of the

crisis is necessary. The bank needs the ability to understand real

capitalization, liquidity & credit positions through various possible

scenarios. Stress-testing will have to be kicked into high gear, simulating

scenarios based on data from crises of recent vintage. Ultimately, banks will

be working towards a transparency of real-time liquidity positions — intra-day

dashboards, for example, are now highly valued to give such intelligence.

They give banks the ability to remediate quickly and decisively: canceling

transactions, reducing outstanding contracts, or settling early.

Next, banks have to update their contingency plans especially for customer

engagement. They need the ability to shift to new modes of working and new

modes of customer engagement through digital technologies like mobile apps,

co-browsing for advisory services, even chatbot services.

Bringing all these capabilities together as banks fight for market share, they

need to have the ability to stand out through data-led customer engagement or

to use Agile capabilities to iterate on new products and services that enable

them to be more responsive to new dynamics post-COVID 19.

Essential reading for bank executives plotting their course for 2020 and beyond

Further expanding on these issues, the whitepaper will explore the future

stages of recovery and map the unknowns which lie before the industry through

the economic slow-down to next normal phases. The new guidance frameworks will

utilize our Resiliency Index which scores banking industries at a regional

level based in their ability to cope and rebound from the effects of the

pandemic using categories such as 'channels', 'data and analytics', and

'workflow processing' in order to quantify best practices from around the globe

as well as their business impact. The whitepaper will prove to be essential

reading for global executives at banks as they seek to understand what can be

done and what will deliver the most impact as they chart their course into new territory.

To date, Huawei has served more than 1,600 financial customers worldwide,

including 45 of the world's top 100 banks. Huawei has also established

comprehensive strategic partnership with more than 20 large-scale banks,

insurance companies, and securities companies around the world. Huawei becomes

a trusted strategic partner for the digital transformation of customers.

Huawei's annual Global FSI Summit is a global ICT event hosted by Huawei that

is focused on partnerships and trends with the financial services industry. It

was founded in 2013 and features thought leaders, consultants and experts from

the industry. For more information, please visit:

https://e.huawei.com/topic/finance2020/en/

SOURCE  Huawei