IBS Journal April 2018
29
WHERE | GLOBAL
Deal activity for conventional back office systems was distributed across all regions in 2017 with Europe coming out top on as the hub for deal activity across all the conventional categories barring Wholesale Banking and Treasury systems. For the latter, nearly half the deals were recorded in Asia Pacific indicating a surge in demand for treasury solutions mainly driven by regulatory compliance requirements imposed on banks and other finance institutions such as wealth and asset management firms. The countries with the maximum number of deals across the regions for conventional systems were India, France, the UK and the US. Notably, the Middle East also saw a flurry of deal activity, particularly in the UAE and Iraq. It is not surprising, though, considering that Banks tend to finalize system investment decisions in a way that assigned budgets are fully utilized before they lapse, or immediately after the new budgets are allocated.
HOSTED VS LICENSED
The percentage of conventional banking system deals hosted on the cloud remained almost the same in 2017 at 20% of total conventional
deals compared to 21% in 2016. Most of the cloud-based installations continued to be in Europe and Asia. A notable trend this year was the substantial number of private banking and investment / fund management deals that were hosted on the cloud. This is in line with the industry trend where wealth and asset managers are increasingly opting for the cost effective and easily scalable cloud-based solutions.
WHEN | WHICH QUARTER IS THE BUSIEST EVERY YEAR
Interestingly the trend in terms of the volume of deal activity across the year remained the same as last year, with the fourth quarter being been particularly active compared to the other quarters. Notably, deals with some of the leading banks such as Societe Generale, Barclays, Credit Agricole, Credit Suisse, were signed either in the first or the last quarter, indicating that IT spend decisions for large banks are likely made in the beginning or the end of the year.
NEW FOCUS AREAS
The IBSI SLT has been continually evolving to track the technological changes currently underway in the banking technology sector, and as a result had launched 4 new categories last year. This year one new category, Investment / Fund Management Systems, was added to that list. It has been noted that suppliers have been reporting these deals under private, so it was decided to showcase these deals in a separate category. The banks and financial institutions have increased their investments in these emerging technologies resulting in 44% of the qualified deal in the IBSI SLT originating from these new emerging areas.
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