With an overall slowdown in the macro-economy and a dismal performance in the stock market, the growth of China’s financial IT applications market in 2012 continued to slow down. However, driven by the demand for improvement of infrastructures, upgrade of the core business system and electronic bank, as well as the development of the management information system and business intelligence system, it still managed to see a modest growth. It is estimated that the China’s financial IT investment will amount to RMB 106.66 billion in 2012, with a year-on-year growth of 7.0%, 2.1 percentage points down compared with 2011.

Figure 1 Size and Growth of China’s Financial IT Applications Market, 2010-2012

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Source: CCID Consulting, September 2012

In 2012, hardware continue to be the users’ primary investment choice, and the investment of the whole year is expected to reach RMB 49.78 billion, accounting for 46.7% of the overall IT applications market; next to hardware are IT services, with an investment expected to reach RMB 38.76 billion, accounting for 36.3% of the total; the investment in software products in 2012 is expected to reach RMB 18.12 billion, accounting for 17.0% of the total.

In terms of demand growth, the growth rate of the demand for hardware products will be significantly lower than that for software and IT services. According to CCID Consulting, the investment in hardware products by users in China's financial industry in 2012 is expected to grow only 4.2% year-on-year, while the growth rates of investment in software and IT services are expected to reach 8.8% and 9.8%, respectively.

Figure 2 Product Structure of China’s Financial IT Applications Market in 2012

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Source: CCID Consulting, September 2012

Generally speaking, users in the financial industry are focusing on accelerating the development of the core business system, the business intelligence system and the decision support system. Meanwhile, with an enhancing correlation among the system applications, the users tend to build more integrated IT systems.

(1) Investment in the development of the core business system will continue to increase.

The core business system is the transaction processing system that covers all kinds of businesses of financial institutions. It is an important platform for the operation of financial institutions, such as managing client information, handling client accounts and core accounts and providing basic business services. Due to its core functions, the system has always been the top priority in the system development of financial institutions and a major investment item.

(2) Demand for the development of business intelligence system and decision support system will grow rapidly.

With further integration of industry resources and improvement of integrated business and data systems, the financial users' demand for business intelligence system and decision support system is growing rapidly. According CCID Consulting, the current growth rate has exceeded 20%, definitely a highlight in the IT applications market.

(3) IT system development is heading towards integration.

Currently, apart from centralized trading system as well as risk monitoring, CRM and in-depth data mining systems based on it, fund trading system, mixed operation management system, mobile information system and processing system for multi-media data services and various new businesses are becoming the hotspots of development in the financial industry.

About CCID Consulting Co., Ltd.

CCID Consulting Co., Ltd., the first Chinese consulting firm listed in the Growth Enterprise Market (GEM) of the Stock Exchange of Hong Kong (HKSE: 08235) and the first consulting firm which gets ISO 9001 international and national quality management system standard certification, is directly affiliated to China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Xi’an, Wuhan and Nanjing with over 300 professional consultants. The company’s business scope has covered over 200 large and medium-sized cities in China. CCID Consulting provides customers with public policy establishment, industry competitiveness upgrade, development strategy and planning, marketing strategy and research, HR management, IT programming and management services, investment and financing, and M&A. The company's customers range from government departments at all levels and diversified industrial parks, to industrial users in strategic emerging industries in new generation information technology, energy saving and environmental protection, biological science and technology, high-end equipment manufacturing, new materials, and new energy. CCID Consulting commits itself to become the No. 1 advisor for urban economy, the No.1 consultancy for enterprise management, and the No. 1 branch for informatization consulting in China.