The Global Vendors of Core Banking Solutions: The Heat Is On
The Global Vendors of Core Banking Solutions: The Heat is On
Celent predicts global spending on core systems will surpass US$80 billion by the end of 2005.
Competition in the global core banking industry is becoming increasingly fierce. Banks are finding that they have little choice but to replace their most vital systems. In doing so, many are looking to packaged vendor solutions for the first time. These solutions promise greater success and speed-to-market for what is by far the most costly and risky project a bank can undertake.
Celent Communications expects global spending on core banking systems will skyrocket to $80.2 billion by 2005. The greatest spending will be by European banks, because their IT departments, rather than business strategists, are making the final decisions. The greater need for system flexibility as a result of the creation of the European Union and use of the euro are also spurring spending on core banking systems in Europe.
While North American banks have been hesitant to replace core banking systems thus far, more system replacements are expected in this region. Foreign solution providers are increasingly setting their sights on this market, which has been dominated until this point by US vendors. "Foreign vendors will attempt to woo US banks with their next-generation systems, but they are likely to face several challenges in this market. No foreign core banking vendors have achieved significant penetration here to date," says Christine Barry, banking analyst and author of the report.
"Next-generation solutions have many advantages over those of the past, but they must prove their ability to provide the same levels of scalability as the mainframe systems in place at most large global banks today. Proven scalability will be key to winning the business of top-tier institutions," adds Barry.
In Celentｹs latest core banking report, "The Global Vendors of Core Banking Systems: The Heat Is On," the solutions of 18 major global core banking solution providers are analyzed and compared against 6 major criteria including solution type, number of global deployments, target market, available deployment methods, technology, and features/functionality. IT spending and regional trends affecting the level of urgency for core replacement are also examined.
The core banking space and reasons for system replacement will be discussed at an upcoming roundtable hosted by Celent on December 2, 2003 at the Le Ritz Paris. Scheduled panelists include representatives from, ABN Amro, Scotiabank, Banco Santandar, Credit Suisse, UBS and ﾖsterreichische Volksbanken. Click here for additional information on this event.
A is available online.
of Celent Communications' Retail Banking and Wholesale Banking research services can download the report electronically by clicking on the icon to the left. Non-members should contact email@example.com for more information.