China Banking IT Solutions Market Shares, 2022: Seeking Resilient Growth in Deepening Competition (I)

This report draws an overall judgment on the market share and competitive landscape in the China IT solutions banking market through desk research and direct interviews with ISVs, systems integrators (SIs), IT product vendors, and end users in the industry, aiming to provide insights for banking organizations and ITSPs. With the deepening of banking DX and the upgrading of demand, the range of vendors covered by this report is expected to change accordingly."In 2022, the size of the China banking solutions market continued to grow but at a slower pace due to the economic downturn, the continuous advancement of digitalization, independent IT technology innovation, and the pandemic. This year, banks continued to advance their transition to distributed architectures, and more attention was paid to independent IT innovation. At the same time, banks supported the real economy through AI, Internet of Things (IoT), and other technologies, and attached more importance to financial security and smart services (such as smart customer acquisition and smart risk control). In addition, market development also showed trends of deepening competition and resilient growth. In one aspect, some emerging technology SPs emerged to embrace new opportunities of digital technology and DX, which had intensified market competition; in another, ISVs strived to gain more shares in various segments with their technical and solution service capabilities while building full-stack andall-domain IT solution capabilities to provide customers with more in-depth and diversified services. Under the pressure of continuous market competition, there were more requirements for solution SPs on product resiliency, service resiliency, and operations resiliency. This involves not only the ability to provide specialized and refined solutions but also the capability to improve the innovation and flexibility of solutions according to market demand and changes and to deliver solutions through ecosystem cooperation or joint services in accordance with the personalized service needs of banks in various segments. The goal is to improve the overall resiliency of solution services," stated Siri Si, senior research analyst at Financial Insights, IDC China."In 2022, the China banking IT solutions market saw resilient growth among many uncertainties and continued to show a gradient-based competitive landscape with significant top vendors. Competition among vendors in each gradient was becoming increasingly fierce, and the shares in all segments would be variable. What industry users needed were generally service-oriented IT solutions, but the proportions of customized and productized solutions varied by segment. To achieve sustainable development, technology SPs need to leverage their advantages, experience, and positioning in the competitive landscape to make trade-offs and choices that are in line with their long-term strategic development," said Eric Gao, research director at Financial Insights, IDC China.