Future of Core Banking: Can Any Vendor Deliver It All?, The

This Financial Insights Perspective reviews the future impact of core banking in the context of a new paradigm that bankers may want to consider using. The historical tradition in core banking vendor selections has focused on evaluating application features, functions, and benefits to find the best alternative for each institution. Since Y2K, many banks have postponed making a core banking selection for a variety of reasons. Bank CIOs and executive managers have to make IT investment decisions that produce a positive, long-term impact. The objective of gaining ground in the marketplace forces bankers to focus on cost, competitive advantage, and achieving an integrated banking enterprise. Is there an alternative framework for evaluating core banking solutions that could change market dynamics?

Core banking, while global in relevance, is local in practice for all but the large multiregional banks. Will there be a game changing or disruptive market mover? Or, is core banking destined to have a dull future? Can core banking vendors deliver it all (cost, competitive advantage, and comprehensive integration)? If yes, how soon and in what form will change happen?