Core Banking Solutions for Large Banks: A Global Perspective

Core banking is the central processing unit of a bank. The banks, with the help of software vendors, have found the opportunity to leverage Internet technology to handle transactions.

Most of the paper-based transactions of yesteryear have been replaced by digital alternatives. Automation has brought a mantra of efficiency and increased productivity. The core banking systems run 24/7 to support banking operations and transactions using Internet banking, ATM, phone, and debit cards.

In this report, Core Banking Solutions for Large Banks: A Global Perspective, Celent compares the range of solutions primarily available to large banks. Celent has created a map of core banking vendors catering to large banks around the world. We have defined core banking solutions for large banks as those solutions whose weighted average asset size of customers is more than $20 billion. In this report, we cover solutions where more than 10% of the banks are located in regions other than North America. Celent then ranks these vendors on its ABCD Vendor View.

According to Rajesh M R, Celent Analyst and coauthor of the report, “Large banks tend to end up with various different solutions, either because of their need for specialized solutions or because of consolidation through mergers and acquisitions. Banks are increasingly preferring SOA-enabled core solutions, with flexible integration capabilities to tie all the existing solutions and provide a centralized infrastructure.”

“When the largest banks in the world are considering core systems, they think as much about integration and architecture as they do about features and functionality,” explains Bart Narter, Senior Vice President of the Banking group and coauthor of the report. “Banks at this tier spend far more on integration and customization than they do on the software itself.”

This is the final report in a series on core banking. Previous reports in the series include Core Banking Solutions for Small Banks: A Global Perspective, Core Banking Solutions for Midsize Banks: A Global Perspective, and Core Banking Solutions for Midsize and Large Banks: A North American Perspective.