Globalization and market reform are changing the Chinese banking industry, creating substantial demand for IT applications and opportunities for international vendors, according to a new report titled “Selling to Banks in China: A Guide to Market Entry for Solution Providers” from Celent, a Boston-based financial research and consulting firm.
Key analyses from the report include:
– International software vendors have significant advantages in the Chinese banking IT market. Their main advantages include product maturity and ability to satisfy the future requirements of banks, while disadvantages include lack of familiarity with the Chinese market, high pricing, high cost of implementation, and lack of local customer support.
– State-owned commercial banks, joint-stock banks and large and medium-sized city commercial banks will pay greater attention to the products of international vendors when choosing large scale systems such as their core business systems, risk management systems and treasury systems.
– Domestic vendors’ advantages lie in their familiarity with the requirements of the China market, low pricing and low cost of human resources, while disadvantages include lack of foresight with regard to future customer requirements, inability to rapidly satisfy customer expectations and inability to align with international standards.
– Celent predicts a new trend is emerging, cooperation between international vendors and domestic enterprises at the capital level.