Banking Industry Registers Growth in BRIC Countries, Says Timetric

28 Jan 2013 • by Natalie Aster

Overall, 39% of C-level respondents are ‘more optimistic’ about revenue growth in 2012

Within the global banking industry, 39% of C-level respondents are ‘more optimistic’ with regards to revenue growth for their companies over the next 12 months compared to the previous 12. This optimism is driven by the growth of the banking industry in emerging nations such as Brazil, Russia, India and China (BRIC) nations, where it proved to be relatively resilient to the global financial crisis.

Consolidation is set to increase in the banking industry in 2012

Executives anticipate increased levels of consolidation over the next 12 months. The main reasons for this are changing capital requirement regulations, pressure on companies’ profitability, a growing focus on divestitures, and a desire to increase global market presence.

China, India and Brazil are the most promising emerging markets

According to the report “Global Banking Industry CEO Business Outlook Survey 2012–2013” by Timetric, China was identified as the leading-emerging market by 44% of respondents. China’s rapid economic development has made it an attractive destination, not only for banking but many other industries. The nation has emerged as the second-largest economy in global terms, meaning banks and other financial institutions are anxious to establish operations in this location.

‘Wealth management’, ‘banking for SMEs’, and ‘debit and credit cards’ are the most promising products for the banking industry

According to 65% of C-level respondents, ‘wealth management’ is expected to reach high levels of demand over the next 12 months, while 55% state that ‘banking for SMEs’ is also expected to record high demand during this period. ‘Debit and credit cards’ are also expected to record high demand as identified by 45% of respondents.

‘Market uncertainty’, ‘regulatory issues’ and ‘increasing competition’ are the main concerns for the banking industry

Market uncertainty is an area of concern for banking industry companies amid the European sovereign debt crisis. Today, financial services providers are operating under economic conditions full of challenges and uncertainties prevailing nationally and internationally. The instability of financial markets and economies resulted in decreased lending by financial institutions. Declining real estate business, a decrease in construction activity and financial stress on borrowers due to uncertain economic conditions particularly in the eurozone.

Average annual marketing budget of companies expected to increase in 2012–2013

In general, marketing expenditure is expected to remain constant over the next 12 months. Cost controls, a restructuring of existing marketing expenditure and large budgets coupled with market uncertainty are considered the key reasons for such expectations. Banking firms are restructuring their budgets to increase expenditure on online marketing campaigns, while rationalizing expenditure on traditional platforms.

‘Social media’, ‘online portals’, ‘mobile’, ‘email and newsletters’ and ‘corporate and brand websites’ will generate the largest proportion of future marketing investment.

Social media and networking sites help marketers to increase their focus on target customers and obtain analytics to measure the effectiveness of their approach. This multi-channel marketing provides a greater return on investment (ROI). Consequently, many financial institutions are focused on using mainstream social networks to market themselves in new and innovative ways. This includes the use of return on engagement (ROE) tools, converting social media site visitors into prospective customers.

Report Details:

Global Banking Industry CEO Business Outlook Survey 2012–2013
Published: September, 2012
Pages: 95
Price: US$ 2,000.00

More information can be found in the report “Global Banking Industry CEO Business Outlook Survey 2012–2013” by Timetric.

To order the report or ask for sample pages contact [email protected]

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