Impact of COVID-19 Outbreak on Asia/Pacific Banks
Michael Araneta, IDC Asia/Pacific’s Head of Research and Advisory for Financial Insights, discussed the impact of the COVID-19 outbreak on Asia/Pacific banks in this online presentation.
We made references from the inputs of IDC’s Financial Insights analysts and from IDC’s predictions on the impact of COVID-19. By doing so, we are able to extract local insights and to contextualize COVID-19 in the region’s banking sector.
Having said that, we have identified three areas of impact of COVID-19 in Asia/Pacific’s banks:
In our evaluation of the top 200 banks in the AP region, 25-30% of IT spending is associated with risk management and compliance.
Furthermore, due to the COVID-19 pandemic, we are anticipating that Enterprise Risk Management and Infrastructure, Compliance and Control, and Information Security will receive heightened attention from management.
In evaluating the COVID-19 impact in Asia/Pacific banks, we will be looking at the lending growth. This is because it reflects how and when the region will bounce bank. And perhaps more importantly, because it is an indicator of revenue growth and profitability. Below are our projections of lending growth per country:
Michael Araneta, Head of Research and Advisory of Asia/Pacific Financial Insights, has enumerated the following points of advice:
If you want to watch Michael Araneta’s entire presentation on this topic, check out this link. The full report is available here. Is your bank a leader in digital transformation? Learn more about the DX Awards Categories.