Fiserv Executive Says Significant Revenue Increases Possible for Chinese Banks
Fiserv Executive Says Significant Revenue Increases Possible for Chinese Banks
October 19, 2005
Fiserv Executive Says Significant Revenue Increases Possible for Chinese BanksBROOKFIELD, Wis.--Oct. 19, 2005--Chinese banks have the opportunity to significantly increase revenue through greater focus on non-interest income, according to Mark Sievewright, a senior vice president at Fiserv, Inc. (Nasdaq:FISV) and a noted analyst of the financial industry.
Addressing senior executives from Chinese banks at the Sixth China Financial Development Forum, held in conjunction with the China International Exhibition on Financial Banking Technology & Equipment in Beijing, Sievewright spoke about future trends in financial services and their impact on Chinese banks.
"When we look at the components of revenue in mature markets (such as the U.S.), nearly half of banks' income is generated from non-interest items. In China, about 11% of income is generated from non-interest items. That means there is a tremendous opportunity for well-positioned Chinese banks to increase fee revenue," said Sievewright.
The conference and invitation-only forum, held at the Beijing Exhibition Centre, was sponsored by the People's Bank of China and attended by 80,000 participants and 200 exhibitors.
Sievewright noted that Chinese banks will face increased competition from foreign financial institutions looking to make investments in the Chinese market, as well as new competition in the form of insurance and brokerage companies offering banking services. He added that while banks have done a good job building new delivery channels, the lack of integration of these channels makes delivery of consistent data - an essential element for customer relationship management - nearly impossible.
"Technology is not enough for a successful implementation of CRM," Sievewright said. "More than 70% of CRM initiatives fail to meet business expectations, despite technology improvements, because the organization's culture and processes are not aligned with CRM strategy."
He cited four foundation blocks on which Chinese banks should focus - deepening customer relationships via CRM, improving efficiency ratios, increasing asset productivity and improving risk mitigation. "As the financial sector expands, Chinese banks have a great opportunity," Sievewright concluded. "To make maximum progress, however, they need to adopt and invest in enterprise-wide risk and customer management systems to compete effectively with foreign banks."
Sievewright is a 26-year veteran in the worldwide financial services and technology industry. With a successful career at Midland Bank/HSBC, Europay (MasterCard International), PSI, TowerGroup and Fiserv, Sievewright has been quoted extensively in the financial press and is a renowned keynote speaker and chair at financial services events and conferences around the world. During his career, Sievewright has presented at more than 200 financial services events in more than 30 countries and consistently receives highly positive feedback from clients and conference organizers alike.
Fiserv, Inc. (Nasdaq:FISV) provides information management systems and services to the financial industry, including transaction processing, outsourcing, business process outsourcing and software and systems solutions. The company serves more than 16,000 clients worldwide, including banks, credit unions, financial planners/investment advisers, insurance companies and agents, self-funded employers, lenders and savings institutions. Headquartered in Brookfield, Wisconsin, Fiserv reported $3.4 billion in processing and services revenues for 2004. Fiserv was ranked the largest provider of information technology services to the U.S. financial service industry in the 2004 FinTech 100 survey by the American Banker newspaper and the Financial Insights research firm. Fiserv can be found on the Internet at www.fiserv.com.
Addressing senior executives from Chinese banks at the Sixth China Financial Development Forum, held in conjunction with the China International Exhibition on Financial Banking Technology & Equipment in Beijing, Sievewright spoke about future trends in financial services and their impact on Chinese banks.
"When we look at the components of revenue in mature markets (such as the U.S.), nearly half of banks' income is generated from non-interest items. In China, about 11% of income is generated from non-interest items. That means there is a tremendous opportunity for well-positioned Chinese banks to increase fee revenue," said Sievewright.
The conference and invitation-only forum, held at the Beijing Exhibition Centre, was sponsored by the People's Bank of China and attended by 80,000 participants and 200 exhibitors.
Sievewright noted that Chinese banks will face increased competition from foreign financial institutions looking to make investments in the Chinese market, as well as new competition in the form of insurance and brokerage companies offering banking services. He added that while banks have done a good job building new delivery channels, the lack of integration of these channels makes delivery of consistent data - an essential element for customer relationship management - nearly impossible.
"Technology is not enough for a successful implementation of CRM," Sievewright said. "More than 70% of CRM initiatives fail to meet business expectations, despite technology improvements, because the organization's culture and processes are not aligned with CRM strategy."
He cited four foundation blocks on which Chinese banks should focus - deepening customer relationships via CRM, improving efficiency ratios, increasing asset productivity and improving risk mitigation. "As the financial sector expands, Chinese banks have a great opportunity," Sievewright concluded. "To make maximum progress, however, they need to adopt and invest in enterprise-wide risk and customer management systems to compete effectively with foreign banks."
Sievewright is a 26-year veteran in the worldwide financial services and technology industry. With a successful career at Midland Bank/HSBC, Europay (MasterCard International), PSI, TowerGroup and Fiserv, Sievewright has been quoted extensively in the financial press and is a renowned keynote speaker and chair at financial services events and conferences around the world. During his career, Sievewright has presented at more than 200 financial services events in more than 30 countries and consistently receives highly positive feedback from clients and conference organizers alike.
Fiserv, Inc. (Nasdaq:FISV) provides information management systems and services to the financial industry, including transaction processing, outsourcing, business process outsourcing and software and systems solutions. The company serves more than 16,000 clients worldwide, including banks, credit unions, financial planners/investment advisers, insurance companies and agents, self-funded employers, lenders and savings institutions. Headquartered in Brookfield, Wisconsin, Fiserv reported $3.4 billion in processing and services revenues for 2004. Fiserv was ranked the largest provider of information technology services to the U.S. financial service industry in the 2004 FinTech 100 survey by the American Banker newspaper and the Financial Insights research firm. Fiserv can be found on the Internet at www.fiserv.com.