Three Cores in One: Core Consolidation at MKB Bank
MKB Bank doubled its efficiency in some departments by migrating from three old core systems to a single modern one.
MKB Bank, the third largest bank in Hungary, had three separate core systems that it decided to migrate to a single modern system. The new core solution, the Globus system, doubled efficiency and allowed the bank to implement changes quickly. In the new Celent report, Three Cores in One, Celent examines the lessons learned from MKB Bank's success.
In July 2006 the Hungarian government passed a law requiring taxes on interest income, and a 20% withholding tax submitted monthly by banks in Hungary. The law was to become effective September 1 of that year. With the deadline only two months away, MKB Bank had to act quickly to update its systems to handle the new requirements. MKB Bank successfully implemented this project by the deadline on the Globus system, a project that would have been impossible with it's previous core systems.
"A modern core system provides both efficiency and flexibility," says Bart Narter, author of the report and senior analyst in the Banking group at Celent. "MKB also needed an international system that would allow them to easily convert to the euro."
A table of contents is available online.
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