Financial Insights Asia/Pacific Executive Survey, 2009: Recovery on the Horizon

This Financial Insights report discusses the findings of the annual executive survey conducted at the Asian Financial Services (AFS) Congress. The responses of 133 technology decision makers from across seven countries in the region have been assessed. This executive survey is the fourth in a series of annual surveys and is designed to examine the business and technology trends seen in Asia's financial sector.

Key findings of the survey show an optimistic expectations of economic recovery in Asia/Pacific, with a significant portion believing that recovery will begin in the first half of 2010. In dealing with the current crisis, banks in the region appear to favor revenue generating activities over cost management initiatives.

Abhishek Kumar, senior research analyst, Asia/Pacific Banking Advisory Service, states, "Asia's financial institutions are now taking an active approach with regard to the crisis, seeking to introduce innovative products and services, rather than the passive approach of cost cutting in the hopes of maintaining the status quo." Kumar also states that banks will go about this strategy by leveraging technology. He concludes, "Despite claims of drastic decreases in IT spending, our survey shows that approximately 26% stated they intended to do so, while the rest were seeking to increase spending or hold it constant. This signifies that Asia's financial institutions will be more cautious in making technology investments, rather than cutting back on them."