Kết quả xổ số miền bắc chủ nhật02 Dec 2020

New IDC Report Reveals the Many Moving Components of Lending Excellence in 2021

Banking Industry Braces for Adverse Credit Risk Conditions in 2021

SINGAPORE, December 03rd, 2020 – IDC Financial Insights Asia/Pacific’s latest report titled Lending Excellence is Composed of Many Moving Parts presents the new requirements for banks to respond to the unique challenges of the lending market across five segments of the credit processing life cycle, and the key objectives in building lending excellence in post-COVID times as lending makes a slow return to normal growth rates in Asia/Pacific*.

“The ideal and all-encompassing mindset in lending excellence is risk-based decision analytics. The application of risk models to create risk scores for loan application or loan underwriting is already well-established in banks. This experience should be extended for risk-based scores in initiation, collections, and recovery as well as to many other crucial decisions in lending," says Michael Araneta, Associate Vice President at IDC Financial Insights Asia/Pacific.

Asia/Pacific banks rely on lending and net interest margins for more than 80% of their revenues. This observation on the importance of lending still stands and has been given much more context by the six big trends in lending identified in this study that have emerged.

Lending excellence calls for mastery in the different processes that make up the lending life cycle, ensuring speed of these business processes, accuracy and precision of the credit decision, and timeliness and accuracy of decisions across different parts of the lending lifecycle. Each segment has its own unique objectives - speed might be the most important in some segments over others, whereas access to third-party information might be more important in other segments. Each segment also brings its own challenges, particularly credit and operational risk challenges.

Figure 1: The Many Components of Lending Excellence

There are many solution providers that support the breadth and depth of capabilities required for lending excellence. Whether through cloud-based platforms or solution sets that bring together different functionalities from various units in the bank, what is needed is a number of varied lending microservices that are extremely agile and cater to different lending needs.

"In the era when new and alternative data can hone credit models, it might be in data and data analytics by which the participation of banks in lending will be most welcome. Some, however, will grow big and well beyond the start-up and tech worlds. Financial technology (fintech) banks will emerge and will compete more directly with traditional banks," ends Darshiniy Selvaratnam, Senior Market Analyst at IDC Financial Insights Asia/Pacific.

Lending Excellence: Decisioning, Alternative Data, and Orchestration will be one of the topics to be discussed at the 2021 IDC Asian Financial Services Congress happening on 24 – 26 March 2021. IDC Financial Insights will unveil its latest research on financial services and insurance industry and provide engaging discussions around Crisis and Recovery Analytics, The Regionalization of China’s FinTech, Next-Generation Digital Core, and many more. Culminating the event will be the awarding of the Banker / Insurer / Challenger of the year in Asia/Pacific*. For more information on the upcoming 2021 Asian Financial Services Congress, visit http://artisanemb.com/AFSC2021

For more information on this report, please contact Michael Araneta at maraneta@idc.com. For media queries, please contact Tessa Rago at trago@idc.com or Alvin Afuang at aafuang@idc.com.

*Note: Asia/Pacific excluding Japan


About IDC Financial Insights

IDC Financial Insights assists financial service businesses and IT leaders, as well as the suppliers who serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing the banking, insurance, and securities and investments industries. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world's leading technology, media, research, and events company.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit artisanemb.com. Follow IDC on Twitter at   and . Subscribe to the IDC Blog for industry news and insights: .