Banking scope document

Banking Research Segment Scope Document

Key Market Drivers

• Banking is a highly regulated industry: Regulatory pressures are driving the need for improved corporate governance, financial and customer data standards and enhanced security.
• Banking convergence is shifting to a focus on organic growth: Mergers and acquisitions are slowly leading to long-term consolidation which will improve efficiency, boost sustainable profits and help banks withstand competition from other financial services providers. Banks also understand the importance of organic growth and recently have shifted priorities to growing current clients while focusing on selective acquisitions.
• Emerging competition from nontraditional players: With low barriers to entry, nontraditional players (such as automotive firms and other conglomerates) are entering the banking market.
• Risk management increases in priority: Limiting credit losses through smarter risk management has cushioned the impact of a slow economy. The new Basel accord shines a spotlight on risk, and it will lead to more robust and comparable risk reporting.
• Corporate governance is in the spotlight: Recent high-profile corporate governance failures have led to increased scrutiny of financial decision making. In the United States, Sarbanes-Oxley is focused on improving corporate governance and the transparency of financial reporting.
• Globalization: The banking industry is becoming increasingly global, enabling many firms to pursue opportunities in many sectors and geographies.
• Customer loyalty, profitability and lifetime value: Customers increasingly are willing to change institutions. Banks are becoming more agile and quick to innovate with new products to retain current customers while attracting new ones, and are countering the trend toward product commoditization.

Top 10 CIO Business Issues (rank ordered)

1. Data protection and privacy
2. Security breaches/business disruptions
3. Operating costs/budgets
4. Economic recovery
5. Enterprise risk management
6. Increased regulation
7. Need for revenue growth
8. Greater transparency in reporting
9. Use of information in products
10. Single view of the customer

Top CIO Technology Issues (rank ordered)

1. Managing/developing an efficient and flexible IT infrastructure
2. Security tools
3. IT performance management
4. Integration middleware
5. Standard desktop
6. Improving TCO
7. Business intelligence
8. Storage management
9. Web design/development and content management

Critical investments in IT that CIOs expect to make through 2004 (rank ordered)

1. Customer relationship management
2. Enterprise application integration middleware
3. Business intelligence
4. Web design
5. Mobile and wireless
6. Web services
7. Security
8. Real-time enterprise

Top 20 Firms in this Market Segment

Rank	Company	Sales ($Millions)
1	GM	185,524
2	DaimlerChrysler	171,529
3	Ford Motor	164,196
4	Toyota Motor	163,637
5	GE	132,890
6	Allianz	127,691
7	AXA	124,369
8	Samsung Group	116,800
9	Chevron Texaco	112,937
10	Volkswagen	109,394
11	ING Groep N.V.	106,520
12	Citigroup	94,713
13	Assicurazioni	79,881
14	Honda Motor	78,222
15	Sony	72,081
16	Hitachi	69,343
17	PSA Peugeot Citroen	68,291
18	Fortis	62,878
19	Nippon Life	62,197
20	Legal & General General	59,586