Evaluating the Vendors of Global Core Banking Systems: Seeking New Opportunities in Emerging Countries
Report Summary
Evaluating the Vendors of Global Core Banking Systems: Seeking New Opportunities in Emerging Countries
After years of making due with old technology, approximately 700 financial institutions worldwide will replace their core solutions in 2011.
Boston, October 25, 2010 – A new report from Aite Group analyzes the key trends within the global core system replacement market. It identifies the geographical regions in which technology vendors have enjoyed the greatest core replacement opportunities over the last couple of years and those in which new opportunities are likely to arise in coming months. The report also examines the key strengths and weaknesses of the leading global core vendors, and compares their strategies to their recent market successes.
As a result of the complexity, cost, and implementation time involved in core system replacement, most banks around the globe have ignored the shortcomings of core systems until recently, instead maintaining the same system for as long as 30 years. Despite the universal urgency, core system replacement has varied greatly by geography and the extent to which a bank’s market has been impacted by the financial crisis. Many banks can no longer ignore core system upgrades, and Aite Group forecasts that approximately 700 financial institutions worldwide will replace their core solutions in 2011. While the U.S. replacement market will show strong growth, the strongest growth is expected to come from EMEA and Asia-Pacific banks, where smaller financial institutions will conduct the majority of replacements.
“New market demands for model bank deployments, parameter-driven solutions, modern componentized architectures, predictive analytics, and product bundling capabilities are creating opportunities for leading solution providers to grow their market share,” says Christine Barry, research director with Aite Group and author of this report. “Though few global core vendors have been able to penetrate the competitive U.S. core replacement market, these vendors have the ability to be game-changers (especially among the largest banks) over the next few years , provided they can demonstrate an understanding of the market and ensure regulatory compliance.”
This report is a follow-up to Aite Group’s May 2010 report, U.S. Core Banking Vendors: Who’s Gaining Momentum? It profiles 10 leading global core vendors: Alnova (Accenture), ERI Bancaire, Infosys, Misys, Oracle, Path Solutions, Polaris, SunGard, Tata Consultancy Services, and TEMENOS.
This 55-page Impact Report contains 11 figures and 15 tables. Clients of Aite Group's Retail Banking and Wholesale Banking services can download the report.