APAC-BFSI-Outlook-2017

Conclusion The banking and financial services industry is under intense pressure following the global financial crisis. Amidst all the regulations and increased oversight, banks are increasingly shutting down non-core activities with lower margins. The message to commercial real estate managers is loud and clear: Optimize the portfolio and cut real estate costs wherever possible. Accordingly, many global banks are rightsizing their operations or shifting back-oŸce operations to non-core locations or lower-cost emerging markets, such as India and the Philippines. They are also trying to streamline space requirements through workplace strategies. Regional banks tend to be less constrained, with many Chinese and Japanese institutions aggressively expanding their presence overseas, including lending and investment as well as physical oŸces. For banks that are under cost pressure, transforming their real estate portfolio may not be enough. Many banks need to adopt radical approaches, such as embracing “Fintech” – new cloud computing, artificial intelligence, big data, and mobile technologies that are disrupting the financial industry. Banks, such as OCBC, DBS and ANZ have been quick to adopt some of these technologies, and many lenders are partnering with tech startups to gain an edge. Fintech adoption, however, is tempered by a lack of regulatory support, infrastructure bottlenecks and a general distrust of online banking in emerging markets. Going forward, the advance and deployment of these technologies will largely define how banking sector operations evolve in Asia.

KAPIL KANALA Associate Director

Research, Asia Pacific T: +91 40 4040 5555 kapil.kanala@ap.cushwake.com

GREG ISAACSON Senior Research Analyst, USA T: +1 312 871 5003 greg.isaacson@cushwake.com

FURTHER REGULATIONS CAN ONLY MEAN THAT THE BANKING LANDSCAPE WILL BE UNDER INTENSE PRESSURE IN THE COMING YEARS.

23