Three Case Studies in Core Banking Systems Replacement
| Paris, France 8th March 2004 |
Case Studies in Core Banking Systems Replacement
In a new study, Celent examines three banks that have made the decision to replace their most vital information systems. Celent finds that such projects at large banks cost in excess of 250 million.
"Large banks who have decided to replace their core systems remain exceedingly rare. However, there are a growing number of institutions moving in this direction" according to Octavio Marenzi, author of the report.
The report finds that such projects cost in the hundreds of millions of euros at large institutions and even more, depending on the current systems architecture and complexity of the businesses that the bank is involved in. As much as half of the overall cost savings are not generated by reductions in IT expenses, but rather through improvements in efficiency in back office operations.
The cost savings generated by such projects, when done correctly, can represent as much as five to eight percent of the total operating budget of the bank. This represents a significant competitive advantage.
The banks feature in this report include: