Corporate banking IT spending continues to grow strongly as Asian economies (alongside their global peers) try to shake off the economic challenges of the past two years. For product technology investment, 2024 will be the year of client lifecycle management and corporate digital platforms. Banks should invest in these areas to support customer digital journeys and speedy, smart product offerings.

• Bank IT spending continues to accelerate in Asia-Pacific, albeit with some distinct variations. Celent’s latest Dimensions IT spending data shows that IT spending for corporate banking rose an average of 5.1% in 2024 and is expected to increase by a further 6.1% in 2025—both above the global average. Japan, China, and India are seeing the largest budget growth in 2024, and both China and India, along with Australia and Singapore, are projecting higher IT budget growth.

• A point of concern, for innovators at least, is that Asian banks will only allocate 39% of technology budget to “change the bank” initiatives. That’s a fall from 51% in 2023, although in line with global trends. Australia is lowest in the ranks, with only 29% allocated to change initiatives.

• The top three drivers for IT spend in the region are meetingcompliance and regulatory requirements, improving IT security & operational resilience, and achievinggreaterspeed and agility.

• Technology priorities are focused on operating the bank. Cybersecurity enhancements, workflow automation, and migration to cloud are the top three priorities for this investment agenda.

• In terms of business and product priorities, there is no clear leader. Banks are investing in enhancing client lifecycle management, digital banking platforms, payment modernization, and loan origination services. Whatever the product or service, the banking experience matters to clients.

APAC Product Investment Priorities for 2024