Core Banking Solutions for Large Banks

by Bart Narter, May 31, 2006

Abstract

San Francisco, CA, USA May 31, 2006

Increased pressure on old core systems has many banks exploring alternatives to keep their core running smoothly and gain competitive advantage.

Core banking systems are the heart of a bank. All transactions move through core systems, which, at an absolute minimum, must remain running and responsive during business hours. Increasingly, these systems are running 24x7 to support Internet banking, global operations, and real time transactions via ATM, Internet, phone, and debit card. In the report, , Celent compares the range of solutions available to banks looking to revamp their core systems.

Many core systems are old and suffering from the equivalent of high cholesterol, with old technology slowing the flow of communications between the core and other systems, making new product development cumbersome. Some of the older solutions are using a Services Oriented Architecture (SOA) wrapper to clear the lines of communication.

Celent predicts that many banks that have not previously considered external solutions will begin to do to so. While many of the largest banks are running homegrown solutions, they are taking another look at solutions from vendors as their old systems show the strain of many years of maintenance. Modern systems are promising the flexibility and agility that come with youth. The report examines the solutions for large banks, that are either looking to maximize use of old solutions or considering new core systems. The solutions analyzed include: Accenture Alnova, CSC Hogan Systems, FIS KORDOBA, FIS Profile, FIS Systematics, Fiserv CBS, SAP for Banking, TCS BANCS, TietoEnator CBS, and TriSyn Infopoint.

"US banks will not be making any significant moves in core banking. Growth in Eastern Europe is strong as banks modernize their systems. The growth of the economies of India and China are placing increasing demands on the banks and therefore the banks' core systems," says Bart Narter, author of the report and senior analyst in the banking group at Celent.

A table of contents is available online.

 

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].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

San Francisco, CA, USA May 31, 2006

Executive Summary 3
Introduction 4
Celent's ABCD Analysis 7
Solutions in Depth 12
  Accenture Alnova 12
  CSC Hogan Systems 20
  FIS KORDOBA 27
  FIS Profile 30
  FIS Systematics 34
  Fiserv CBS 38
  SAP For Banking 45
  TCS Bancs 49
  TietoEnator CBS 53
  TriSyn Infopoint 57
Summary 60
Objectivity & Methodology 61

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