Interest is core system transformation has developed in the post-financial crisis landscape. This report considers the drivers for renewal, optimum scope, and strategic options for transformation.
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.
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