Wealth mgm?t firms seen investing heavily in digital channels

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Between 2011 and 2016 the Asia-Pacific (APAC) region will increase its IT spend by a compound annual growth rate (CAGR) of 8.5 percent, with China?s investment reaching $1.78 billion and Japan reaching $1.33 billion according to forecasts from the global analysts. ?Increasing profitability is a priority for all financial institutions,? said Jaroslaw Knapik, senior analyst for financial services technology at Ovum. ?As the use of digital channels increases, banks will strengthen their focus on mobile channels and self-service functionality in an effort to connect and empower their customers.? The growth in IT spending by wealth management institutions will give rise to more personal financial management tools offered to customers. Increased support for smartphones and tablets will be driven largely by investment from non-financial institutions, as well as the recent advances made in mobile finance platform technology. Ovum forecasts that investment in Internet and presence technologies by APAC?s high net worth banking and financial planning businesses will reach $150 million, while retail brokerage and retail asset management organizations will increase their investment to $135million and $73 million, respectively. Knapik concluded: ?Customer attitude toward banks has changed greatly as a result of the financial crisis. Increasingly, digital channels are being developed to improve customer loyalty and cross-selling opportunities but also to lower servicing costs. While the economy is recovering, organizations should be focusing on the opportunity to increase revenue and improve trust among customers. ?This, coupled with the increased investment in personal finance management tools, will enable more self-management and closer monitoring of financial assets, helping to increase overall knowledge of finance management.? ]]>

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