Banks in the Asia Pacific lag behind global peers in terms of regulatory change readiness.
Less than one-third of banking executives in the Asia-Pacific region (APAC) are equipped to handle the changing regulatory landscape compared to 46 percent of their peers in North America and Europe, according to new research developed by Asia Risk and Oracle.
The road to modern finance and risk remains a work in progress among APAC banks, the report's authors said.
Importance of Data
«Using data and innovation to drive business insights» examines more than 150 banking Chief Financial Officers (CFO), Chief Risk Officers (CRO) and other executives in key data roles. It also looks at the state of integrated finance and how banks use data for business insights to react to rapid changes in the regulatory environment.
«For banks, the ability to see, know and balance the way they are performing and complying with regulations is mission-critical to their current operations. Our survey highlights how Asia Pacific banks are struggling to overcome the challenges with cost, risk and finance, regulations and the complexity of managing data,» Sonny Singh, Senior Vice President and General Manager, Oracle Financial Services said in a statement.
Use of Technology
If banks are aligned to the right operating model, technology, artificial intelligence, machine learning, and robotic process automation, it could help deliver a step-change in efficiency. Technology can transform many of the manual processes banks rely on today, particularly those related to meeting regulatory requests and gaining useful data insights to meet business objectives.
To meet complex regulatory requirements, banks need an overall data strategy and incorporate leading technologies to better manipulate the data in a transparent and controlled manner.
Rapid Strides
«Today, integrated finance and risk involves a fair degree of intervention at the human level; there has to be quite a bit of advancement to enable it to innovate and take advantage of the rapid strides in digital technology,» Madhivanan Balakrishnan, Chief Technology and Digital Officer, ICICI Bank said in a statement.
