Core Banking Systems Replacement Benchmark 2011 - subscribe today
IBS Intelligence embarked on a major international core systems benchmark exercise in June/July 2011 to gain an insight into the current status and plans of banks across the globe. With the industry acclimatising to tough economic conditions and with banks now having a reasonable understanding of the regulatory response to the credit crunch, the dust has started to settle, so what were the issues raised and what are banks' new priorities going forward?
We have also published a new follow-up Banking Systems Market Survey 2012/13 featuring a broader question base and with 101 respondents. Whilst the 2011 benchmark is still of value to all involved in the industry, please also review the new 2012/13 Survey.
Covering a broad range of areas (see below for details of the questions asked), the benchmark delves into the business priorities, current system functionality, replacement plans and new technology focus of 88 financial institutions who responded from 53 countries spanning every continent (see chart below - the names of the banks are not provided as anonymity was a key part of achieving such a detailed level of response).
- The appetite for core system replacement is considerably less among Western European respondents than their peers. Only three out of 24 respondents here indicated replacement plans, whereas more than half the respondents in each other region had such plans.
- A relatively high proportion of banks are looking to replace outlying systems. This is particularly pronounced for retail payments, where 19 of the 43 banks with a separate system for this are expecting to replace it.
- Cloud computing struggles to make an impact, with six respondents viewing it as 'very important' but far more believing it has little or no role to play.
This new Core Banking Systems Replacement Benchmark 2011 provides unparalleled insight into what is driving change in the core systems market based on real responses. You will also discover why and how banks are reacting to change and also their levels of satisfaction with current technologies and previous implementations. The results include 15 colour figures and charts (see extract figure below) for easy reference and analysis, all of which can be printed.
These benchmark results are an essential research tool for financial institutions, technology vendors and consultants alike, to compare core system development plans against the overall responses of 88 global banks, as well as to evaluate and refine product strategies.
Detailed below are the questions included as part of the benchmark exercise:
Part 1: Business priorities - Identifying the current and future focus of the bank's business
What is the importance of the following business areas in terms of contributions to your bank?
- Corporate lending
- Private banking
- Retail banking
- Trade Finance
- Treasury/capital markets.
In the next three years, do you expect the importance of any of these areas to change?
Part 2: Core Banking Systems - Identifying the type of the current, main, core banking system operating at the bank.
What is your main core banking system(s)?
- In-house System
- Package System
- Outsourcing arrangement.
Depending on your response, please tell us:
- What is the system’s main functional scope?
- When was the system developed?
- What technology is the system based on?
- What are the system's key strengths?
- What are the system's key challenges?
- How satisfied are you with the system?
Part 3: System Replacement - Gauging the level of activity and the main drivers behind decisions to implement new systems.
Do you have any plans to replace your core system?
When do you propose to start the development or the selection process?
What are the main business drivers/benefits, please rate how important the following factors are behind your decision to replace your core system?
What other systems do you have, do you have any plans to change any of those systems and if so what is the reason for that change?
Part 4: Technology
We also asked a question about how important the following new technologies are to your bank and which are you prioritising?
Cloud Computing / Separate Billing Engine / Service Oriented Architecture/Web services / Business Process Management software / Business Intelligence / Data warehouse for compliance / Data warehouse for management reporting / Data warehouse for financial accounting / Business Process Outsourcing /Enterprise Services Bus.
Part 5: Past implementations
We also asked a question to identify what have been the main challenges of previous implementations?
Unrealistic expectations / Customisation / Availability of third-party resources / Organisational issues / In-house expertise / Cultural issues / Integration / Data migration / Staff training / Inappropriate system selected / Unrealistic budget / Support from the system supplier / Unrealistic timescales.
Drawing on over 20 years of expertise, an internal database of 13,000+ past and present international system implementations, and our extensive library of independent research publications, IBS Intelligence can provide bespoke market research. We can also provide personalised briefings to meet any pressing business need, whether an in-depth conference call discussing a specific supplier and its systems, or a senior management presentation in person or via webcast detailing emerging trends.
If 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 competitor trends, and the strengths and weaknesses of 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.