Tokyo, Japan
December 13,
2002
China Bank IT Spending to Reach US $10.5 Billion
by 2005
Report Published by Celent
China’s
largest banks are in the midst of a massive IT overhaul, which will
consolidate redundant systems, enhance core capabilities, and extend the
reach and functionality of multiple delivery channels. As a result, bank
IT spending in China is growing rapidly at 23.9 percent year-on-year, and
will reach US$10.5 billion by 2005, according to a new report from Celent,
Bank Technology in China.
 China is host to the world's most extensive banking
system. It is also one of the most complex and fragmented banking IT
infrastructures in existence, built piecemeal over the past three decades
and beset with redundant systems, a plethora of disparate standards, and
low levels of inter-regional connectivity. Within five years,
however, this picture will change radically. By 2007, Chinese banks
will consolidate their sprawling and non-standardized IT systems, enhance
service delivery channels to their retail and corporate customers,
including ATMs, Internet banking, mobile banking, and call centers, and
build out data warehousing, CRM, and business intelligence capabilities.
"A
number of factors are inducing China's major banks to upgrade. As a
result of China's entry into the World Trade Organization (WTO), foreign
banks can compete more freely in the Chinese market. Domestic banks
will need to modernize in order to compete effectively with these new
entrants," says Neil
Katkov, author of the report. "There is also intense
internal competition, with smaller, regional players winning customers
away from the largest banks, in large part due to the new, integrated,
multi-channel IT infrastructures that these upstarts have built over the
past five years."
The report analyzes demographic trends shaping China's
banking market, the size of the market and its institutional structure and
major players, IT spending by Chinese banks, and initiatives and trends in
core systems, branch automation, and delivery channels (ATMs and cards,
Internet banking, and mobile banking). The report also discusses banks'
use of system integrators and vendor-supplied solutions, and describes the
leading domestic bank IT vendors. The report contains 21 charts and 7
tables.
A Table
of Contents is available online.
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