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

This report draws an overall conclusion on the market share and competitive landscape in the China banking IT solutions 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 IT SPs. With the deepening of banking DX and demand upgrade, 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 along with the economic downturn, the continuous advancement of digitalization, independent IT innovation, and the pandemic. This year, banks continued to advance the transition to distributed architectures and paid more attention to independent IT innovation. At the same time, banks supported the development of the real economy through AI, Internet of Things (IoT), and other technologies and valued more financial security and smart services (such as smart customer acquisition and smart risk control). In addition, market development also showed the characteristics of deepening competition and resilient growth. In one aspect, some emerging technology SPs emerged to embrace new opportunities of digital technology and digital transformation (DX), which had intensified market competition; in the other, ISVs strove 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 resilience, service resilience, and operations resilience. It involves not only the ability to provide specialized and refined solutions but also the capability to improve the innovation and flexibility of solutions based on 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 resilience 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 still 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," says Eric Gao, research director at Financial Insights, IDC China.