International Banking and financial Services Term Paper

International Banking and financial Services - Term Paper Example It is a back bone of global banking services. According to the IT benchmarking survey, 85 banks located across 13 countries in this region do not allocate appropriate funds for IT. Various surveys have shown that situations in the matured Asia Pacific markets are slightly different from the emerging markets. It has been noticed that in matured markets banks have increased their spending on IT. In 2010 14.7% of total operating expenses were accounted for IT. In 2011 it increased and became 15.8%. In 2012 the trend decline somewhat and became 15.5%. On the other hand the scenarios in emerging markets are not at all satisfactory. In 2010, 9.4% of total operating expenses were due to IT, the trend continues to lower down. In 2011 it became 9.3% and in 2012 it reduced drastically to 8.1%. The scenario may be fair in case of matured markets of the Asia Pacific regions. But in comparison to European banks the budget allocations of Asia pacific banks in the field of IT are very inappropriate . European banks spend 19% of their total operating costs in the field of IT. It is being observed that banks belonging to the matured markets of Asia Pacific regions are spending their money for strategic changes. Those banks are focusing less towards running the bank. So, automatically their IT spending will focus upon different IT applications rather than IT infrastructure. Different surveys very categorically stated that recently banks from matured markets have started including IT in their business system for the sake of growth and efficiency. The banks are promoting customer centricity, process improvement and channel transformation with the help of IT. On the other hand banks from emerging markets are more focused towards fundamental things and trying to reduce IT complexity. It is very clear from the different surveys that banks from emerging markets of Asia Pacific are trying to catch up business growth and are more focussed towards