Retail Banking Core Platform Transformation Strategies (Strategic Focus)
The post-financial crisis environment is exacerbating many of the challenges arising from use of legacy core systems, driving a renewed consideration of core transformation. This report considers the drivers for transformation and whether this is always appropriate, together with assessment of the strategic options for banking platform renewal.
For most banks that have undergone core replacement, particularly when accompanied by wider bank transformation, the availability of consultants (within vendor and wider external market) with sufficient experience and expertise is often flagged as a major limiting factor.
For banks considering replacement strategies, vendor selection has tended to focus on the degree of functionality fit. This is important, but should not be the primary criteria for core system selection. For this banks need to assess strength of underlying technology architecture and depth of offering in supporting product innovation.
Core system transformation projects often start with a planning stage which focuses on mapping out the desired end-state for the core banking platform. While valuable in allowing a bank to understand extent of current gap and plan a migration path to this desired future state, banks should be aware of the potential issues with this approach.
Features and Benefits
Defines the scope of core systems and the banking platform
Understand how the post-financial crisis landscape is changing core system strategy
Assess the options for core system transformation being adopted in the retail banking sector
Key Questions Answered
What are the main considerations for core systems transformation?
Is core systems transformation always appropriate?
What is the impact of regulatory change on core system strategy?