Core Banking Replacement: Get Ready…It’s Coming
Replacing the core system is one of the most daunting technology endeavors a bank can pursue. Done incorrectly, it can waste management attention, bring product development to a halt, sink a bank’s profitability, and ultimately hurt a bank’s reputation. Banks that are able to unscramble and simplify the legacy patchwork of technology and processes will be well positioned to achieve high performance. Those that cannot innovate to enhance product flexibility and the customer experience will struggle to keep up. Banks must now ask themselves if their technology architecture supports the business strategy. But deciding to make a change is only the beginning.
In this Strategic Commentary, titled “Core Banking Replacement: Get Ready…It’s Coming,” Speer & Associates, Inc. (S&A) examines developments in core banking platforms over the past decade and the market forces behind these innovations. S&A contends that banks can no longer sit on the sideline of the systems game. The core banking platform must be tuned and ready to go to support a bank’s business strategy.
