FIS Research Reveals a Slowdown in Use of Emerging Technologies in APAC, Despite Their Role in Accelerating Growth
New research released today from financial services technology leader FIS has found that confidence amongst financial services firms based in APAC has grown for the second year in a row. However, the research has also revealed mixed progress towards making the transformation of technology and operations needed to catch up with the growth demonstrated by global leaders.
Key findings from the research include:
• 73% of the firms surveyed said they were confident in meeting their growth objectives, compared to 66% in 2018 and 41% in 2017. Firms in this region are more confident than their counterparts in North America (68%) and Europe (70%)
• However, only 47% say that their technology capability is sufficient to support their growth plans, well behind the 71% of firms globally that the FIS research identified as Readiness Leaders
• Fewer firms in APAC have or are moving mission-critical applications to the cloud, with just 26% in the region compared to 48% of Readiness Leaders globally. However, a further 22% are in the planning process and another 47% are assessing the feasibility of such a move.
• Progress in adopting other advanced technologies in APAC appears to be slowing, even though these emerging technologies are accelerating growth for firms that adopt them
o 21% of firms are testing or live with blockchain solutions, compared to 60% of global leaders, and down from 33% in 2018
o Only 16% are testing or implementing Artificial Intelligence solutions, compared to 51% of global leaders, and down from 29% in 2018
With global leaders growing at an average rate of 3.3% and APAC firms at 1.43%, the FIS research strongly suggests that embracing emerging technologies is central to achieving growth.
Sanjay Varma, Group Managing Director for APAC, Middle East and Africa at FIS, said: “Though confidence is high amongst financial services firms in APAC, our research suggests this may need to be backed up with urgent action and a faster pace of transformation. The firms we have identified as global leaders are outpacing their counterparts in Asia in the technology transformation that is defining the future of financial services, and their revenues are growing over twice as fast as a result. Firms in this region need to embrace emerging technologies to catch up.”
About the research
FIS surveyed over 2,000 senior executives at financial services firms around the world, including more than 600 in APAC. The survey asked them to assess their organization’s capabilities across six key pillars. Based on these scores, FIS then further analysed those organizations ranking in the top 20% of the FIS scoring system. Classified as “Readiness Leaders,” the top 20% were studied to see how their investment priorities differ from their peers and how that impacts their growth.
FIS is a global leader in financial services technology, with a focus on retail and institutional banking, payments, asset and wealth management, risk and compliance, and outsourcing solutions. Through the depth and breadth of its solutions portfolio, global capabilities and domain expertise, FIS serves more than 20,000 clients in over 130 countries. Headquartered in Jacksonville, Fla., FIS employs more than 47,000 people worldwide and holds leadership positions in payment processing, financial software and banking solutions. Providing software, services and outsourcing of the technology that empowers the financial world, FIS is a Fortune 500 company and is a member of Standard & Poor’s 500® Index.