Customer-centric IT to drive profit for the financial sector in AP: FICO

Nurdianah Md Nur

Banks and lenders in Asia Pacific are becoming more aware of the role that customer-centric IT has in driving profitability, revealed FICO's recent survey.

The survey took the opinions of chief risk officers (CROs) who attended the FICO APAC CRO Forum in December last year.

Seventy-two percent of the respondents felt that driving profitability in 2014 is of greater importance than it was in 2013. Customer-centric IT is able to help "increase an organisation's competitiveness and grow its market share", said Daniel McConaghy, president for FICO in Asia Pacific. Thus, about a third of the respondents estimated that 10 to 25 percent of their organisation's IT spend this year will be set aside for customer-centric IT instead of organisational IT.

 "As IT priorities move from  the back end of organisations to the forefront, CROs are looking to adopt more sophisticated  analytic technology and reap stronger returns on investment," said McConaghy. For instance, banks and lenders can use data analytics on their existing customer relationships to provide personalised marketing efforts to their customers.

The survey also found that originations, mobile banking and marketing were among the CROs' top priorities for technology investments in 2014.  CROs also rated credit risk as their top priority among the priorities in risk and compliance investment.