San Francisco, CA, USA
April 4, 2006
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Overcoming the
Fear Factor: Migrating Core Banking Systems
Report Published by Celent
Many top tier banks have opted not to
replace old core systems built in the 1970s and 1980s. But one brave bank
was willing to take the plunge.
In the report, Overcoming the Fear Factor:
Migrating Core Banking Systems, Celent charts Webster Bank’s
migration from a thrift core system to a commercial bank core system, in
which the bank supported its growing commercial business, installing
modern teller and platform solutions and a unified core architecture.
Ms. Zeynep Fredrick, Webster Bank’s CIO, chose to
outsource the core, which is not a common decision at banks in the US$20
billion asset range. "People who knew me were surprised," says
Fredrick, "but I needed to remember that this conversion was for
Webster Bank, not for IT." Ultimately converting from a Unisys
mainframe environment to an IBM mainframe environment was too expensive to
justify keeping the core in-house.
"Webster accomplished in 15 months
what could have easily consumed five to seven years," states Bart
Narter, author of the report and senior analyst in the banking
group at Celent. "I haven’t seen a core migration in North America
of this magnitude in the past decade or more," he continued.
The report also includes an examination of the
trends in outsourcing of core systems across bank sizes and geographies.
Celent uncovered huge geographic differences in the appetite for
outsourcing. Everyone acknowledges that outsourcing is becoming more
popular, but it is far more popular in some regions.
A table
of contents is available online.
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