Asia Pacific banks are ready to take advantage of truly digital cores – delivering competitive advantages beyond cost
PR88656
SINGAPORE and LONDON, March 24, 2021 /PRNewswire=KYODO JBN/ --
- New research from IDC and Thought Machine reveals Asia Pacific markets most
ready for core banking transformation – outlined in new Digital Core Banking
Opportunity Index
- Truly digital cores will deliver numerous benefits for the region's banks,
including agility, migration and cost
Thought Machine, the cloud native technology company with its APAC headquarters
in Singapore, and International Data Corporation (IDC), have released their
second piece of joint research entitled Truly Digital Core Banking: You Are
More Ready Than You Think(
https://info.thoughtmachine.net/truly-digital-core-banking ).
In this new piece of research, IDC outlines Asia Pacific's readiness for
banking transformation and a clear path for banks in the region to adopt modern
core technology and deliver truly digital banking experiences.
IDC's new proprietary index, the Digital Core Banking Opportunity Index, maps
regional markets according to two dimensions: opportunity-to-benefit and
execution readiness. Within the opportunity-to-benefit dimension, markets have
been measured on customer readiness for digital banking and market
infrastructure. In the execution readiness dimension, markets have been
measured on their propensity towards changing legacy systems and the maturity
of their market infrastructure.
The markets measured in the index are: Australia, Indonesia, Hong Kong,
Malaysia, New Zealand, Philippines, Singapore, Thailand and Vietnam. Findings
from the index show that:
- Singapore and Australia hold the largest opportunity for digital core
banking, with the remaining markets ready for digital transformation.
- Some of the oldest core systems are in the Philippines and Malaysia, whereas
Vietnam has relatively newer core systems.
- The majority of Asia Pacific markets measured are contained within the
'Market Acceleration' segment: primed to take full advantage of digital core
offerings
- Indonesia and Thailand have a strong propensity to change their core bank
systems, while Malaysia and Philippines have been slow to migrate to a digital
core.
The paper also details the reinforcing nature of digital core banking
technology – how modern software architecture increases bank delivery
capability, and the ability to continuously innovate. This, in effect,
accelerates a bank's overall readiness to execute on full digital
transformation.
In the latter half of the paper, IDC has detailed the exact requirements for a
modern digital core – outlining 25 distinct attributes the system should
possess, including on-demand analytics, intelligent configuration, flexible
licensing, cost reduction and more.
Michael Araneta, Head of Advisory and Research, IDC Financial Insights, said:
"IDC has examined the new wave of investments into digital core banking systems
in the Asia Pacific region and can now reveal that banks are primed to benefit
from the capabilities of a new generation of core banking systems. They can
finally be more efficient, more customer-centric, and more agile. No market in
the region, and no bank for that matter, should wait for the 'right time down
the road'. The time is now."
Nick Wilde, Managing Director APac, Thought Machine, said: "Asia's markets are
now able to take advantage of the efficiencies of cloud-native architecture, an
API-driven framework and low-code enhancement capabilities that are inherent in
truly digital core systems. The intersection point has arrived – Asia's markets
are ready to execute, and capture material benefits by migrating to a truly
digital core."
The paper explores Thought Machine's core banking engine, Vault, in the context
of these attributes. An assessment of low-code and no-code development
paradigms reveals that Vault's low-code approach unlocks multiple benefits for
banks wishing to be agile in fast-changing environments. Vault's API-driven,
real-time approach, has also been highlighted for its ability to streamline
integration with other systems, connect with Open Banking programs, and allows
banks to take advantage of new digital channels.
The paper closes with an assessment of the migration approaches available for
legacy banks when adopting modern digital core banking systems. Vault is
highlighted for its ability to cater to multiple types of migration: reducing
the complexity, risk and cost involved in the process.
About Thought Machine
Thought Machine was founded in 2014 with a mission to enable banks to deploy
modern systems and move away from the legacy IT platforms that plague the
banking industry. We do this through our cloud native core banking platform,
Vault. This next generation system has been written from scratch as an entirely
cloud native platform. It does not contain a single line of code which is
legacy, or pre-cloud.
Founded by entrepreneur Paul Taylor, Thought Machine's customers include Lloyds
Banking Group, SEB, Standard Chartered, Atom bank, Monese, TransferGo and
Curve. We are currently a team of more than 450 people spread across offices in
London, Singapore, Sydney, Melbourne, New York and have raised more than £110m
in funding from Eurazeo, Draper Esprit, SEB, British Patient Capital, IQ
Capital, Playfair Capital, Nyca Partners, Lloyds Banking Group and Backed.
For more information visit thoughtmachine.net
About IDC
International Data Corporation (IDC) is the premier global provider of market
intelligence, advisory services, and events for the information technology,
telecommunications, and consumer technology markets. With more than 1,100
analysts worldwide, IDC offers global, regional, and local expertise on
technology and industry opportunities and trends in over 110 countries. IDC's
analysis and insight helps IT professionals, business executives, and the
investment community to make fact-based technology decisions and to achieve
their key business objectives. Founded in 1964, IDC is a wholly-owned
subsidiary of International Data Group (IDG), the world's leading tech media,
data and marketing services company. To learn more about IDC, please visit
www.idc.com. Follow IDC on Twitter at @IDC( https://twitter.com/idc?lang=en )
and LinkedIn( https://www.linkedin.com/company/idc ). Subscribe to the IDC Blog
for industry news and insights: http://bit.ly/IDCBlog_Subscribe.
SOURCE: Thought Machine
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