BearingPoint, Inc cited digitization Monday as a key area of improvement for China’s banks as they emerge on the financial services world stage, according to a news release from the Virginia-based consulting firm.
“The use of tools like Business Process Management and Enterprise Content Management to digitize data and eliminate paper-based processes is key for the development of China’s banks and they could potentially leapfrog western banks in the use of digital tools,” said Manuel Barbero, a managing director with BearingPoint. “China’s banks can leverage the latest architectures with their opportunity to make new investments. Such architectures will be necessary to serve the market size and the breadth required in the coming years.”
Matthew Ding, a managing director with BearingPoint in Shanghai, also noted that China’s banks are poised to become some of the most influential financial institutions in the world over the next 10 years. However, Ding said the banks first need to address some fundamental management issues.
Of primary importance for China’s banks is the need to enhance their ability to manage risk, he said in a statement. The banks can become more transparent and granular by not only investing in the appropriate technology, but also by investing in the development of their people’s capabilities, especially in such areas as leadership development, governance training and credit and risk management, he said.