By Prince Osuagwu

Mobile Devices,  Social Media, Advanced Business Analytics, and More Stringent Regulation are part of the strategies Financial institutions across the Middle East and Africa (MEA) will adopt, if they must survive in 2012 business year.

This is the view of world renowned market research and advisory company, International Data Corporation, IDC.  The group says that the financial institutions must adopt the latest technologies and communication trends in 2012, with an aim to improve customers’ experience.

This is also as it warned that the sector must also brace for competition with global players on the region’s markets, and comply with increasingly stringent regulatory requirements.

The Middle East and Africa saw economic growth levels in 2011, just like in 2010, with an average gross domestic product (GDP) of 4.6%.

The finance vertical has recorded healthy growth in technology adoption since 2010, and IDC estimates that IT expenditure had a total of  $7.5 billion across MEA as a whole in 2011, representing a 6.0% year-on-year increase.
However, IDC says that the strongest growth rates were seen in Saudi Arabia with 13.7% , the United Arab Emirates with 8.8% , and Israel with 7.6%.

Senior research analyst with IDC, Bijen Ramdas, noted that  “IT budgets are forecast to continue growing in 2012, although the uncertain economic, political, and regulatory environments will affect spending initiatives among financial institutions across the region.

The expansion of alternative digital channels and the adoption of cloud computing for storage purposes, for example, will positively influence cost efficiency.

In an increasingly competitive landscape, financial institutions will need to pay careful attention to improving customer service levels.