Three Cores in One: Core Consolidation at MKB Bank
AbstractSan Francisco, CA, USA July 10, 2007
MKB Bank doubled its efficiency in some departments by migrating from three old core systems to a single modern one.
MKB Bank, the third largest bank in Hungary, had three separate core systems that it decided to migrate to a single modern system. The new core solution, the Globus system, doubled efficiency and allowed the bank to implement changes quickly. In the new Celent report, Three Cores in One, Celent examines the lessons learned from MKB Bank's success.
In July 2006 the Hungarian government passed a law requiring taxes on interest income, and a 20% withholding tax submitted monthly by banks in Hungary. The law was to become effective September 1 of that year. With the deadline only two months away, MKB Bank had to act quickly to update its systems to handle the new requirements. MKB Bank successfully implemented this project by the deadline on the Globus system, a project that would have been impossible with it's previous core systems.
"A modern core system provides both efficiency and flexibility," says Bart Narter, author of the report and senior analyst in the Banking group at Celent. "MKB also needed an international system that would allow them to easily convert to the euro."
A table of contents is available online.
Members of Celent's Retail Banking and Wholesale Banking research services can download the report electronically by clicking on the icon to the left. Non-members should contact firstname.lastname@example.org for more information.
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 operating unit of Marsh & McLennan Companies [NYSE: MMC].
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Table of ContentsSan Francisco, CA, USA July 10, 2007
|The Drive to Change Systems||6|
|Objectivity and Methodology||21|