The Global Vendors of Core Banking Solutions: The Heat Is On

November 12, 2003

Abstract

Boston, MA, USA November 12, 2003

The Global Vendors of Core Banking Solutions:  The Heat is On

Celent predicts global spending on core systems will surpass US$80 billion by the end of 2005.

Competition in the global core banking industry is becoming increasingly fierce. Banks are finding that they have little choice but to replace their most vital systems. In doing so, many are looking to packaged vendor solutions for the first time. These solutions promise greater success and speed-to-market for what is by far the most costly and risky project a bank can undertake.

Celent Communications expects global spending on core banking systems will skyrocket to $80.2 billion by 2005. The greatest spending will be by European banks, because their IT departments, rather than business strategists, are making the final decisions. The greater need for system flexibility as a result of the creation of the European Union and use of the euro are also spurring spending on core banking systems in Europe.

While North American banks have been hesitant to replace core banking systems thus far, more system replacements are expected in this region. Foreign solution providers are increasingly setting their sights on this market, which has been dominated until this point by US vendors. "Foreign vendors will attempt to woo US banks with their next-generation systems, but they are likely to face several challenges in this market. No foreign core banking vendors have achieved significant penetration here to date," says Christine Barry, banking analyst and author of the report.

"Next-generation solutions have many advantages over those of the past, but they must prove their ability to provide the same levels of scalability as the mainframe systems in place at most large global banks today. Proven scalability will be key to winning the business of top-tier institutions," adds Barry.

In Celentケs latest core banking report, "The Global Vendors of Core Banking Systems: The Heat Is On," the solutions of 18 major global core banking solution providers are analyzed and compared against 6 major criteria including solution type, number of global deployments, target market, available deployment methods, technology, and features/functionality. IT spending and regional trends affecting the level of urgency for core replacement are also examined.

The core banking space and reasons for system replacement will be discussed at an upcoming roundtable hosted by Celent on December 2, 2003 at the Le Ritz Paris. Scheduled panelists include representatives from, ABN Amro, Scotiabank, Banco Santandar, Credit Suisse, UBS and ヨsterreichische Volksbanken. Click here for additional information on this event.

A is available online.

of Celent Communications' Retail Banking and Wholesale Banking research services can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.

        

Send mail to info@celent.com with questions or comments about this Web site.

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 November 12, 2003

The Global Vendors of  Core Banking Solutions

Return to report Abstract

 

EXECUTIVE SUMMARY 3
INTRODUCTION 5
REGIONAL TRENDS 10
VENDOR LANDSCAPE 16
VENDORS 18
  ALNOVA 18
  CSC (Hogan Systems) 20
  ERI 22
  Fidelity Information Services 23
  Financial Objects 25
  FiServ 27
  I-Flex 29
  InfoSys 31
  Jack Henry 33
  Kordoba 35
  Metavante 36
  MISYS Wholesale Banking Systems Limited 38
  Open Solutions 39
  Polaris 41
  Sanchez 42
  SAP 44
  System Access 47
  Temenos 48
VENDOR COMPARISONS 52
CONCLUSIONS 62
OBJECTIVITY & METHODOLOGY 64

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