Measuring the Banking Industry’s Rise to the New Normal
At HUAWEI CONNECT 2020, International Data Corporation (IDC), the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications and consumer technology markets, along with Huawei, have released a major White Paper titled “Banking Industry Rises up to the New Normal”.
In this paper, IDC and Huawei survey the impact that Covid-19 has had on the banking industry and outlines steps that should be taken by banks to ensure their future success. As part of this report, IDC and Huawei have developed a Banking Resilience Index, which quantifies the current status of banking by region in terms of six key measures. This Index shows major regional differences and can be used by banks to assess their own Resilience and provides guidance for where to focus on future success.
At HUAWEI CONNECT 2020, Huawei and its partners are showing the wide range of FSI solutions, including Financial Cloud, smart branches, digital CORE and intelligent data platforms. These solutions allow banks to reduce costs, increase agility to the rapidly changing FSI environment, attract and retain customers and position themselves against emerging competitors.
The recent disruptions to everyday life have moved the focus of financial services to Mobile and Huawei has been a leader in supporting the move to mobile interactions globally, based on the early experiences in China. The insights we are sharing are allowing financial customers globally to respond and support customers in these trying times.
These experiences led Huawei to work with IDC on this report. Some of the major findings in the report concern the financial impact of the pandemic on bank’s balance sheets, the exponential increase in digital payments from mobile devices and the dramatic shift in the role of branches in banking services. In looking to the future, IDC finds that efforts should concentrate on:
- Channel Upgrades – moving to a completely digital customer journey,
- Communication Rethink – changing how services are delivered to customers,
- Infrastructure Overhaul – building on hybrid cloud and microservices,
- Data and Analytics Redefinition – building robust data lake and AI capabilities,
- Workflow Reimagining – moving beyond paper and PCs to mobile workflows, and
- Platform Transformation – incorporating emerging technologies such as 5G, AI and IoT, etc.
Taken together, the Banking Resilience Index and the focus areas, provide guidance for banks as they deal with the continuing challenges of “The New Normal”.
Huawei will continue to expand its engagement with the world’s leading financial organizations and the insights provided by this report will provide a solid foundation for that work.