Is 2015 the Year Large Banks Finally Replace Core Systems?
Report Summary
Is 2015 the Year Large Banks Finally Replace Core Systems?
Core vendors should consider banks' attitudes toward technology when ranking prospects.
Boston, February 4, 2015 – While the 15- to 20-year-old core systems at large banks are still reliable, they are often expensive to maintain and present challenges with new technology integrations and new product and strategy rollouts. While few large banks can deny a new core system's benefits, only a handful have replaced theirs over the last 10 years. Despite that, core banking technology providers are confident at the beginning of each new year that the largest banks will finally replace their core systems over the next 12 months. Is that confidence justified in 2015? Or will most banks continue to look for quick fixes and build layers onto old legacy systems?
Based on a 2014 online and telephone survey of senior IT executives at large banks around the world, this piece analyzes how likely banks with greater than US$10 billion in assets are to replace their core banking systems during 2015. It also highlights banks' level of satisfaction with current core systems and capabilities and their planned spending in this area.
This 15-page Impact Note contains nine figures and one table. Clients of Aite Group's Wholesale Banking & Payments or Retail Banking & Payments services can download this report.