Cloud-Based Core Banking Systems: Enter the New Challengers

Celent will help qualify your requirements and introduce you to the vendor
Spotted a missing vendor? Use this form to alert a vendor to the Celent service
Create a vendor selection project & run comparison reports
Register to access this feature
Click to express your interest in this report
Indication of coverage against your requirements
Vendor requires PRO subscription to activate this feature
Requires research subscription, contact Celent for more info
29 June 2017
James O'Neill

A Flash Insight Report

Abstract

With the announcement in December, 2016 that a US-based credit union has decided to convert to a new cloud-based core banking system (CBS), these technologies are beginning to transition from "bleeding edge" to leading edge. This report examines the various cloud-based CBS vendors that are currently operating in the market and the implications for banks considering a future upgrade to their IT capabilities.

Capital One’s announcement in November 2015 that it was moving many of its mission-critical systems to Amazon Web Service’s public cloud signaled a new era of banking powered by cloud services. One year later, Chrome FCU’s announcement that it was migrating to a cloud-based CBS platform confirmed that cloud-based banking is approaching mainstream adoption.

The migration of CBS platforms to the public cloud presents a rare opportunity to achieve two conflicting objectives at once: reducing costs and capital requirements while increasing agility in the building and running new digital services.

Celent believes that within the next 24 months, cloud-based CBS platforms will have gained enough market traction to become a regular part of a bank’s RFP process. Banks and their IT service providers ought to start now in formulating their competitive response to the coming age of banking in the cloud.

“The days when bank CIOs could dismiss the use of cloud services based on regulatory or IT security concerns are over. Innovative banks of all sizes are seeking to achieve ‘first mover’ advantages by migrating some or all of their IT services to the cloud in the pursuit of greater agility and cost competitiveness,” said James O’Neill, a Senior Analyst at Celent.

“Banks that have put cloud services on their strategic back burner need to reconsider their position, or risk falling behind in an area that offers significant promise in reconciling greater customer service with improved operating efficiency,” he added.

Insight details

Special Interest
Cloud
Content Type
Flash reports
Report Type
Industry Trends
Location
Asia-Pacific, EMEA, LATAM, North America
Subscription categories
Banking, Corporate Banking, Retail & Business Banking