Core Banking Systems Cost Benchmark 2012
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How much does a core banking system cost? A simple enough question but where would you go to find an answer?
In 2012 IBS Intelligence embarked on a ground-breaking international research exercise to provide a benchmark of the cost elements involved across a range of core banking systems. We compiled responses from 52 banks across 41 countries, each of which has acquired a new system recently, and asked them to share the details of the system's costs and project schedules – see the questions posed listed below. Of the 52 responses, 30 provided full details on the system pricing, with a further 22 offering partial information.
Factoring in as well a range of pricing information from other sources, IBS seeks to bring transparency to the thorny question of core banking systems costs to the industry for the first time.
Our unique cost benchmark answers questions such as:
How much did a bank in continent X pay for a system from a core banking supplier for retail lending, deposits, SME lending, payments, trade finance and treasury for # users at # branches?
Core Banking Systems Cost Benchmark 2012 provides the details of the costs submitted by the respondents across a range of system types, with expert analysis and commentary of the values given and resulting trends. Anonymity was a key part of encouraging banks to respond, and whilst the report discloses the values and comments made in full, the bank is identified by location only.
- 52 banks across 41 countries responded (Tier 1 - Tier 4)
- Reveals the system costs and commercial structures
- 30 full pricing submissions (+22 partial entries)
- Responses broken down by geography
- Responses broken down by system type
- Unlimited print & copy.
Access includes colour figures and charts for easy reference and analysis, all of which can be printed.
| Bank 11 (Tier 4)|
|What core banking system have you implemented?||Mainstream universal banking system|
|Who did you buy the system from?||Vendor direct|
|When did you select the system?||December 2009|
|What was the scope of the system?|
|How many users does the system support?||1,500 users|
| Where has the system been implemented?|
- Single site implementation
- Central-hub serving remote locations
- Multi-site implementations
|When was or when will the implementation be completed?||November 2011|
|Was the project delivered||Behind schedule 6 months late|
|What was the main reason for the variance?|
Change from De-centralized branch deployment mode to Centralized branch deployment mode after finding that branch server (offline) solution does not work as required. Weblogic performance challenges with IBM Java6 Network upgrades as version is very bandwidth hungry
|What were the terms of the deal?|| Outright purchase|
|Core system licence fee||$1,200,000|
|Other software licence fees (please give details)||$800,000|
|Services from the core system vendor||Implementation cost ($ 1,000,000)|
|Services from third-parties (please give details)||$200,000|
|Maintenance (as a percentage of licence fee)||22%|
|Other (please give details, including any pay per use model)|
|Does the pricing information given above refer to:||The first implementation site only|
|Was the overall project expenditure?||Under the original budget 10%|
|What were the main reasons for the variance?||Delivery Ownership|
|How are you amortising the project? Please specify|
|Have you measured the return on investment (ROI)?||No|
|What is the predicted timescale for your ROI?|
If you are a financial institution engaging in a systems review or selection, or a supplier or consultant active in the industry, access to these results will offer a rare and unique insight into the costs of a core banking system.
- About the Core Banking Systems Cost Benchmark 2012, plus FREE extract >>
- Market Overview & Commercial Considerations >>
- Core Banking Systems Cost Benchmark 2012 Findings >>
- Responses: All 30 complete pricing submissions >>
- Responses: Region - Africa >>
- Responses: Region - Asia >>
- Responses: Region - Asia Pacific >>
- Responses: Region - Central & Eastern Europe >>
- Responses: Region - Central America >>
- Responses: Region - Western Europe >>
- Responses: Type - Local system >>
- Responses: Type - Mainstream universal >>
- Responses: Type - Regional universal >>
- Responses: Type - Retail >>
- Responses: Selection of the 22 partial submissions >>
Extract responses to the reason for variance in project delivery time:
'Too many bugs in core part of the system identified during user testing, incompetence of PM and functional consultants. Limited documentation about the system.'
'Underestimation of the gap by the Vendor. Vendor did not staff the project properly since the beginning. Low quality of early deliverables.'
'The devil was in the detail when it came to requirements development and system integration.'
Extract responses to the reason for variance in project expenditure:
'Double the expenses due to the project delays and extra gaps / changes identified after the completion of the gap analysis mainly due to the delays that forced us to incorporate changes over the years into the new system.'
'New customisation requirements, additional modules and some additional professional service fees.'
Published May 2012
Gathering and maintaining up-to-date information on markets, competitors and activity in the banking community is essential but challenging. IBS Intelligence can help. Drawing on over 20 years of expertise, an internal database of 13,000+ past and present international system implementations, and our extensive library of in-depth research publications, we can provide bespoke market research to meet any project requirement.
Whether you are a bank engaging in a system selection, or a technology vendor seeking new opportunities, our unique independent perspective will offer unprecedented insights into industry issues, drivers and trends, and the strengths and weaknesses of the suppliers and their systems.
- We are strictly impartial and objective
- We can identify the best approach for your needs
- We deliver a sound independent view of new or existing markets.
Arrange a briefing with one of our analysts to discuss your research requirements - contact firstname.lastname@example.org or call us on +44(0)1303 262 636.
HOW TO ORDER
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***Special Offer*** - order multiple-user access to the Core Banking Systems Cost Benchmark 2012 and receive a package discount, email firstname.lastname@example.org for a tailored quote.
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