Core Banking Systems
See below for a list of independently written IBS Journal news and feature articles and IBS Intelligence Research vendor profiles, case studies and market analysis related to Core Banking Systems in order of publication date.
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Core banking is another way of saying the core functions of a bank. These functions represent the essential (core) business of banking. Because of the plethora of services banks now provide, it is easy to forget that the root of banking is accepting deposits and lending money. The definition of core banking may have been muddied by the emergence of packaged computer solutions which combine core banking functions with other elements of a bank’s operations but at the most basic level core banking manages financial transactions and their impact on the accounts of its customers.
To achieve this it is obviously necessary to hold details of the bank’s customers (often called customer static data - their names and addresses, for example) or to link into another database that holds that data. Therefore a core banking system will often offer a basic customer database function, often referred to as a Customer Information File or CIF.
Often, a core banking system will maintain linkages between accounts and customers. A banking system that holds a single instance of a customer’s record and then relates all of that customer’s accounts to that record is said to be ‘customer centric’. By looking at the customer a banker will then be able to see all of that customer’s accounts – which enables the bank to manage across the entire customer relationship (CRM or customer relationship management). A core system that holds a list of accounts without linking them back to a single instance of a customer is said to be ‘account centric’. In this day of integrated banking services and cross-selling there is little scope for account centric systems, although these may exist in other, more specialised areas of the bank.
You may also be interested in our Core Banking Systems Case Studies: 62+ real-life system implementations, from selection and process to go-live and results >>
Another essential function for a bank, as for any business, is to maintain its own set of accounts. The bank’s own books, or general ledger, represent the bank as a business concern and should show the normal business activities (premises, staff costs, etc.) as well as the balances it holds on behalf of customers, interest and charges that have accrued and other assets, liabilities, income and expense items. A core banking system will usually provide some of these basic accounting services.
A core banking system will often provide other routine maintenance activities. Such essential activities as opening and closing accounts, calculating interest (both due to the customer and due from the customer), processing customers’ standing orders, providing account statements and interfacing to outside systems for making and receiving payments are all considered to be part of the core business of banking and therefore the legitimate functions of a core banking system.
- Interest calculations
- Processing of cash deposits and withdrawals
- Processing of incoming and outgoing remittances, cheques, etc.
- Customer management
- Customer account management
- Definition of the bank’s products (product management) including such things as minimum balances, interest rates, number of withdrawals, etc.
- Interest rate definition
- Customer’s standing instructions
- Maintaining records of all financial transactions
A packaged retail core banking system might include functions that are closely related to core banking activities. So a package may include such functions as:
Processing of applications for loans received from branches, etc. (called loan origination)
Branch management, often including facilities for maintaining teller cash drawers, etc.
Cheque book ordering
Internet banking
Banks can have differences in the type of business that they conduct. They may for example be in retail banking (the type of banking that is seen in the high street), or be in wholesale banking (the bank-to-bank market often referred to as the inter-bank market) or securities trading (the buying and selling of stock, shares or government debt instruments). As a result their ‘core’ businesses can be considerably different.
Their core banking system will therefore reflect the type of business of the bank and be either:
Retail banking
Commercial banking
Wholesale banking
Treasury banking
Private banking
Table of Contents for our Core Banking Systems Market Dynamics Report 2013:
- Core Banking Systems Market Overview >>
- Core Banking Systems Global Analysis 2007-2012 >>
- Core Banking Systems Market Valuation >>
- Core Banking Systems Sales Tables 2007-2012: Sales by year, region, supplier and system >>
- Core Banking Systems Country Analysis: Africa Region – including A-Z sales tables 2007-2012 by country and system >>
- Core Banking Systems Country Analysis: Asia Pacific Region – including A-Z sales tables 2007-2012 by country and system >>
- Core Banking Systems Country Analysis: Australasia Region – including A-Z sales tables 2007-2012 by country and system >>
- Core Banking Systems Country Analysis: Central & Eastern Europe Region – including A-Z sales tables 2007-2012 by country and system >>
- Core Banking Systems Country Analysis: Central & South America Region – including A-Z sales tables 2007-2012 by country and system >>
- Core Banking Systems Country Analysis: Central & South East Asia Region – including A-Z sales tables 2007-2012 by country and system >>
- Core Banking Systems Country Analysis: Middle East Region – including A-Z sales tables 2007-2012 by country and system >>
- Core Banking Systems Country Analysis: North America Region – including A-Z sales tables 2007-2012 by country and system >>
- Core Banking Systems Country Analysis: Western Europe Region – including A-Z sales tables 2007-2012 by country and system >>
- Core Banking Systems Country Analysis: Worldwide (non-country specific) – including A-Z sales tables 2007-2012 by country and system >>
Universal Banking Systems
A super breed of core banking systems has emerged which offer functionality in addition to core banking. These systems, called universal banking systems, can accommodate combinations of banking services such as retail, wholesale, private banking and securities trading. An advantage of using a universal system is that data can be transferred easily between the different modules so a bank can identify customer trends or selling opportunities for example if a customer has high levels of cash balances and also performs securities trading then they may be a sales opportunity for private banking services. A disadvantage is that it is unlikely that a single vendor is able to offer modules that are ‘best of breed’ in each function. The alternative approach is to use a core banking system and augment its functionality by using ‘best of breed’ packages for the specific functionality needed such as foreign exchange trading or portfolio management for example.
You may also be interested in our How To Select & Implement A Universal Banking System guide including 10 case studies of banks that have implemented a universal system >>
More recently, the arrival of Service Oriented Architecture (SOA) has caused package vendors to redesign their core banking systems. SOA enables broad packages to be de-constructed into their constituent parts with each part or function then offered as a service. So for example a core banking activity of opening a new account could be split into multiple services – one for establishing a customer name and address (and checking if one already exists for that customer), one for performing a credit check, one for opening the actual account type needed, one for ordering a ‘new customer’ pack, one for ordering a plastic card for the account and so on. This allows a return to the pure core banking system component of transaction and account management.
Changing a core banking system is probably one of the most complicated and intensive projects faced by IT managers and even the most experienced will approach this task with more than a little apprehension. However, the continual evolution of technology, banking products and regulatory requirements, means a replacement of the core banking system will face every bank sooner or later, regardless of its size, scope of operations and geographical location.
System Selection Best Practice Training
When a bank decides to select a new core banking system, it is usually because the systems it is using no longer meet commercial or operational goals. For many financial institutions, the path from research and selection to a live implementation of a new system is often long and far from straightforward, with many hurdles and challenges along the way. For any bank engaging in a system selection, the likelihood of something going wrong is high. There is no margin for error, which is why success depends on careful preparation and attention to detail during the all-important selection stages.
You may be interested in our Banking System Selection Best Practice and Risk Mitigation Workshop >>
Negotiations & Contracting Training
One of the most significant challenges during a core banking system project occurs when the relationship between the bank and its software and/or consulting vendors becomes strained, either because of missed deliveries, the discovery of unsuspected complexities or from external competitive or regulatory pressures. This crucial relationship is primarily governed by a complex series of contracts between all the parties involved, which are themselves based on numerous discussions, understandings and agreements reached during the selection, negotiation, and post go-live phases.
You may be interested in our Improving Negotiations and Contracting Techniques with Technology Vendors training course >>
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Article: Heritage Bank implements DNA platform from Fiserv/Open Solutions
16 May 2013
US-based Heritage Bank is implementing the DNA offering from Open Solutions (now part of Fiserv) to consolidate its systems and accommodate future growth. The first phase of getting products set up on the DNA system has been completed, and go-live is...
Article: Fiserv: ICBS/Signature
15 May 2013
Contents: Management Summary / Company Details / Origins / Functionality / ICBS/Signature Technical Details / Notable Takers / Expansion and Plans / ICBS/Signature Service and Functionality / Reorganisation / International Strategy / A New...
Article: About the Core Banking Systems Market Dynamics Report 2013, plus FREE extracts
13 May 2013
This in-depth report constitutes the core banking industry's only real snapshot of who has been buying what and where – featuring over 2150 on- and off-the-record deals including bank, system, supplier, geography, system type and year for 2007-2012....
Article: Financial Software Systems/Ion Trading: Spectrum
13 May 2013
Contents: Management Summary / Company Details / Origins / Back Office Developments / Spectrum Technical Details / Partners and Expansion / Spectrum Service and Functionality / Acquisition of Spot Systems / Later Progress / The Arrival of Ion...
Article: Wall Street Systems: Wallstreet Back Office/FX, Wallstreet Suite
13 May 2013
Contents: Management Summary / Company Details / Origins Wall Street Systems / Functionality / Wallstreet Back Office/FX Technical Details / E-Commerce / Wallstreet Back Office/FX Service and Functionality / SOCX / RZB and Other Deals / Origins ...
Article: Core Banking Systems Global Analysis 2007-2012
13 May 2013
This article provides in-depth analysis of the core banking systems market from 2007-2012. We explore each year in detail separately, giving the ability to gauge what was happening before the worst of the crisis and seeing this in relation with...
Article: Core Banking Systems Market Valuation
13 May 2013
What is the value of the core banking systems market? This question, or regional or country subsets of it, is regularly put to IBS, with interest increasing in difficult times. Related to this is the average cost for a core...
Article: Core Banking Systems Market Overview
13 May 2013
The Core Banking Systems Market Dynamics Report 2013 drills down into the Jan-Dec 2012 analysis as well as putting it into context alongside the previous five years' equivalents. IBS has now been doing our annual analysis of core system selections...
Article: Core Banking Systems Sales Tables 2007-2012: Sales by year, region, supplier and system
13 May 2013
This chapter provides sales breakdowns for the full Core Banking Systems Market Dynamics Report 2013 dataset, featuring the following tables: Sales by system, supplier and type 2007-2012 (Totals) / Sales by year (2007-2012), region and supplier /...
Article: Core Banking Systems Country Analysis: Africa Region – including A-Z sales tables 2007-2012 by country and system
13 May 2013
Africa has contributed a steady number of deals over the last few years and, while it fell away in 2011, it bounced back in 2012. This was in contrast to all other continents, which either remained static or saw a fall in decisions. 2012, as with...
Article: Core Banking Systems Country Analysis: Asia Pacific Region – including A-Z sales tables 2007-2012 by country and system
13 May 2013
Sales have held up well in this region, with a downturn in a few countries offset by robust sales in a number of others. As in previous years, a fair number were treasury; there was also a small number of interesting universal banking...
Article: Core Banking Systems Country Analysis: Australasia Region – including A-Z sales tables 2007-2012 by country and system
13 May 2013
Australian banks are under way with core system projects, at least in outlying areas of their operations. Meanwhile, 2009 saw a few interesting decisions at the lower end of the market but nearly everything dried up in 2010 and 2011, bar one...
Article: Core Banking Systems Country Analysis: Central & Eastern Europe Region – including A-Z sales tables 2007-2012 by country and system
13 May 2013
After a pick-up in activity in 2010 (following the very quiet years of 2009 and 2008), 2011and 2012 saw core banking software sales plummet in Central and Eastern Europe. Banks that have sought to implement new systems have often struggled,...
Article: Core Banking Systems Country Analysis: Central & South America Region – including A-Z sales tables 2007-2012 by country and system
13 May 2013
Central and South America is a relatively small market for international vendors but has been characterised by spikes of activity in individual countries. It was somewhat more resilient than much of the rest of the world in 2011 and 2012. In...
Article: Core Banking Systems Country Analysis: Central & South East Asia Region – including A-Z sales tables 2007-2012 by country and system
13 May 2013
It is not easy to make generalisations for such a large and diverse geographical area, which includes parts of the Caucasus, the Central Asian Republics, the Indian subcontinent and mainland South-East Asia. With this in mind, business was up by...
Article: Core Banking Systems Country Analysis: Middle East Region – including A-Z sales tables 2007-2012 by country and system
13 May 2013
2011 and 2012 have seen few selections in the Middle East, with a particular drop off in the traditional financial centre of Dubai. The market had stood up pretty well until 2010, when the slump began.
Article: Core Banking Systems Country Analysis: North America Region – including A-Z sales tables 2007-2012 by country and system
13 May 2013
The slight pick-up in 2010 looked to be built upon in 2011 and 2012. It is still far from booming but the North American systems market is showing signs of mirroring that country's economy, with more activity than in other parts of the world.
Article: Core Banking Systems Country Analysis: Western Europe Region – including A-Z sales tables 2007-2012 by country and system
13 May 2013
If you are looking for good news across Western Europe, look elsewhere: 2012 was another poor year for system sales, and there has been a steep slump since 2009. Order access to the...
Article: Core Banking Systems Country Analysis: Worldwide Implementations – including A-Z sales tables 2007-2012 by country and system
13 May 2013
Core Banking Systems Country Analysis: Worldwide implementations (non-country specific) – including A-Z sales tables 2007-2012.
Article: 3i Infotech's first customer in Myanmar implements Kastle Core Banking
09 May 2013
Myanmar Livestock Fisheries and Development Bank (MLFDB) is implementing the Kastle Core Banking solution from India-based vendor, 3i Infotech, becoming the first client in the country to do so. The customisation stage is currently underway and...
Article: Sainsbury's Bank opts for FIS as banking technology partner
08 May 2013
Long-known to be heading into the UK banking market with its own fully-owned bank, Sainsbury's has selected a broad hosted service from FIS to underpin this. There will be a phased migration from the systems of Lloyds Bank, which is selling its 50 per...
Article: Latest news on Misys Bankfusion
07 May 2013
Two early projects to implement Misys' Bankfusion Universal Banking core system have taken different routes: one bank has finally gone live with the system, but the other one is believed to have given up and to be pondering a new system selection.
Article: Case study: Home Trust Company – Back to the drawing board
07 May 2013
Home Trust Company in Canada is reaping the benefits from its enterprise-wide modernisation venture. The project, initiated in late 2007, surpassed the boundaries of a technology revamp by encompassing a full business process reorganisation, an...
Article: Direct Banking Focus Case Study: Barclays US – raising the Profile
07 May 2013
When the US subsidiary of retail banking giant, Barclays, decided to venture into the online deposits world, it looked to domestic vendor FIS, with its Profile core banking system. Andrew Harris, director of deposit products at Barclays US, talks...
Article: Direct Banking Focus Case Study: ZUNO – 'less bank, more life'
07 May 2013
ZUNO, a pure-play online bank unveiled by the Raiffeisen group two years ago, has surpassed the €1 billion mark in deposits. Its operations are underpinned by the Finacle core system from Infosys. The system's launch, says ZUNO's CIO and COO, was a...
Article: Direct Banking Focus Case Study: Knab – where the client, 'klant', comes first
07 May 2013
Netherlands-based Knab, a greenfield direct banking subsidiary of the Aegon group, believes the banking market is ripe for diversification. Knab's choice of core banking software is Sopra Banking Platform from Sopra Banking Software (formerly...
Article: Backchat – May 2013
07 May 2013
The latest gossip from around the industry.
Article: Who's Bought What? – May 2013
07 May 2013
A round-up of recent orders in the financial technology sector worldwide. New deals for BML Istisharat, Intrasoft International, Fundtech and Vsoft Corporation.
Article: On the move – May 2013
07 May 2013
A round-up of recent appointments and departures within the industry. New hires at SAP, Accenture, Avaloq and Misys; departures at Rubik Financial, Wolters Kluwer Financial Services and CGI/Logica.
Article: Midwest Business Solutions selects Vsoft for core banking
01 May 2013
Vsoft Corporation has secured a new taker for its core banking solution, Coresoft, beating heavyweights, Fiserv and Harland Financial Solutions, to the deal. This is Midwest Business Solutions (MBS), a US-based credit union service organisation....
Article: Brand new core banking offering gains first live site
01 May 2013
Netherlands-based banking software vendor, Ohpen, has gained a first live site for its new system. This is Robeco, an international asset manager with €176 billion under management. 'We are very pleased to have such a major name as our full reference...
Article: Nedbank moves towards core system decision
30 April 2013
South Africa's fourth largest bank is believed to have narrowed its search for a new domestic core banking system to three heavyweights, while questions have arisen about its systems strategy in the rest of Africa.
Article: Wahda Bank live with iMAL core system
29 April 2013
Libya-based Wahda Bank has launched its Islamic banking services range on Path Solutions' iMAL core system. More business in the country is to follow, says the vendor, as domestic banks are mandated to go fully Shari'ah-compliant by 2015.
Article: Bank Al Muamelat Assahiha in Mauritania goes live with iMAL
26 April 2013
Bank Al Muamelat Assahiha (BMS) has become the third live site in Mauritania for the iMAL core banking system from Kuwait-based Islamic banking software provider, Path Solutions. The vendor was chosen ahead of a spate of regional and international...
Article: UPDATE: Failure of Co-operative Bank and Lloyds merger puts IT issue in spotlight
24 April 2013
As the acquisition of Lloyds' 630+ branch network by fellow UK player, Co-operative Bank, is no more, will Co-op revert to its pre-merger IT roadmap?
Article: Sopra Banking Software fleshes out strategy
24 April 2013
Sopra Banking Software, banking software subsidiary of France-based Sopra Group, has completed the integration. The strategy of the unified entity focuses on two key offerings, Sopra Banking Amplitude and Sopra Banking Platform.
Article: New core banking system deal for BML Istisharat
17 April 2013
UAE-based Investbank, a long-standing user of Oracle FSS's Flexcube core platform, is expanding to Lebanon. For this greenfield operation, the bank has opted for the ICBS core offering from local vendor BML Istisharat.
Article: Intrasoft International muscles into African core banking software market
15 April 2013
Greece-based banking software vendor, Intrasoft International, is advancing in Africa with its Profits core system, with a clutch of microfinance clients in Rwanda, a significant win at a Kenyan bank, and a potential win in Uganda.
Article: Commercial Banking Applications: IBAS GBF
09 April 2013
Contents: Management Summary / Company Details / Origins / Expansion / IBAS GBF Technical Details / Product Development / IBAS GBF Service and Functionality / The Next Generation System / Additional Products and Plans / Revived Sales /...
Article: Fors Banking Systems: Va-Bank
09 April 2013
Independently researched profile featuring company status, history, background, future strategy, system functionality and technical specifications, plus an extensive, verified user list for Fors Banking Systems' Va-Bank, including a pie...
Article: Capgemini reinvigorates partnership with SAP for SAP for Banking
09 April 2013
Capgemini has re-energised its relationship with SAP on the core banking side as it anticipates an increase in the SAP for Banking uptake worldwide. It is now in search of a large-scale SAP for Banking project to participate in. At the same time,...
Article: People's Bank in South Sudan kicks off Autobanker II deployment
08 April 2013
People's Bank in South Sudan has kicked off its implementation of Autobanker II from Pakistan-based vendor, Autosoft Dynamics. The start-up has become the vendor's fourth core banking client in the country. Go-live is scheduled for early May this...
Article: Harland Financial Solutions: PhoenixEFE
05 April 2013
Contents: Management Summary / Company Details / Origins / Expansion / PhoenixEFE Technical Details / Problems / The Arrival of London Bridge / PhoenixEFE Service and Functionality / The Arrival of Fair Isaac; Progress in the Middle East /...
Article: Path Solutions: iMAL
05 April 2013
Contents: Management Summary / Company Details / Origins / First Clients / iMAL Technical Details / Accelerated Progress / iMAL Service and Functionality / Into New Regions / Further Expansion and Plans / Sales by Year 2005-2012 and by Region...
Article: TwoFour Systems: TwoFour
05 April 2013
Contents: Management Summary / Company Details / Origins / A First Taker / Additional Signings / TwoFour Technical Details / TwoFour Service and Functionality / Fortis / Sales by Year and Region 2006-2012 / Conclusion / TwoFour User List and ...
Article: R-Style Softlab: RS-Bank
05 April 2013
Independently researched profile featuring company status, history, background, future strategy, system functionality and technical specifications, plus an extensive, verified user list for R-Style Softlab RS-Bank.
Article: Trust Systems & Software: Microfins, TrustBank
05 April 2013
Independently researched profile featuring company status, history, background, future strategy, system functionality and technical specifications, plus a verified user list for Trust Systems & Software.
Article: TurboConsult: Cibis, Elbos
05 April 2013
Independently researched profile featuring company status, history, background, future strategy, system functionality and technical specifications, plus an extensive, verified user list for TurboConsult Elbos and Cibis.
Article: Open Solutions (now part of Fiserv): DNA
05 April 2013
Independently researched profile featuring company status, history, background, future strategy, system functionality and technical specifications, plus an extensive, verified user list for Open Solutions DNA, including a pie chart breaking...
Article: Temenos: T24 – Part 3 (Partner Strategy to T24 User List and System Implementations by Region Pie Chart)
05 April 2013
Contents Part 3: Partner Strategy / Product Strategy / Current Corporate Strategy / Sales by Year 2004-2012 and by Region / Conclusion / User List and System Implementations by Region Pie Chart. (See also
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