Core System Replacement: A Case Study of Citibank

July 31, 2002

Abstract

Boston, MA, USA July 31, 2002

Case Study: Replacing Core Systems at Citibank

In this case study, Celent examines the replacement of Citibank's core systems for wholesale banking in Europe, Asia, Africa and Latin America. According to Octavio Marenzi, managing director at Celent and author of the report, “Although many banks have tried to replace their core systems, most of these efforts have failed. Citibank is one of the few instances where a major bank has been able to replace significant parts of its core systems successfully”.

In the case study, Celent outlines the history of the project at Citibank, the technology decisions made in terms of both software and hardware for the new application and examines the roll out of this system across twenty countries.

Celent estimates that Citibank will eventually be able to generate savings in excess of US$100 million annually due to this migration.  A Table of Contents is available online.

of Celent Communications' Wholesale Banking research service can download the report electronically by clicking on the icon to the left.

        

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Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

Boston, MA, USA July 31, 2002

Core System Replacement:  A Case Study of Citibank

Return to report Abstract

 

EXECUTIVE SUMMARY 3
CORE BANK SYSTEMS 4
  Inflexibility 4
  The Failure of Core System Migration Projects 4
  Citibank's Core System -- COSMOS 5
REPLACING COSMOS 7
  Selecting the New Architecture 8
  Software -- Flexcube From I-Flex 9
  Hardware -- Hewlett-Packard Superdome 10
FINANCIAL ANALYSIS 14
CONCLUSIONS 17
  Next Steps at Citibank 17
  Lessons for Other Banks 18

 

        

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