Core Banking Solutions for Small Banks: A North American 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Most paper-based transactions of yesteryear have been replaced by digital alternatives.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 the new report, Core Banking Solutions for Small Banks: A North American Perspective, Celent compares the range of solutions available to small banks in North America. Celent has created a map of core banking vendors catering to small banks in North America. Celent then ranks these vendors on its ABCD analysis.



According to Rajesh M R, Celent analyst and coauthor of the report,"Small banks typically prefer core banking vendors to provide an integrated solution. With the desired features increasing in complexity, the banks depend on experienced vendors for supporting their needs."

"A hosted model is clearly an attractive one to most small (less than $500 million in assets) banks, but it is interesting to note that there are a number of vendors in this category that still have the majority of customers running on-premise," stated Bart Narter, Senior Vice President of the banking group at Celent. This will generate upcoming research from Celent.

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