Is Your Core Banking Solution Up to Par? IDC Financial Insights Rates Core Banking Solutions for Asia/Pacific Banks in New Report
Singapore and Hong Kong, January 22, 2015 – Banks in Asia Pacific are increasingly looking at the research and development budgets being spent by vendors on future solutions, says IDC Financial Insights.
Michael Araneta, research director for Asia/Pacific Banking IT Strategies, IDC Financial Insights, explains that this means core solutions not only have to respond to the requirements of scale, operating cost efficiency and time to market, but also in how prospective solutions deal with new requirements of data management (as banks vigorously pursue single customer views and other enterprise-wide consolidated views, they are reviewing how data structures are organized within their core systems), risk management and compliance, and cloud delivery.
That was the key finding of IDC Financial Insights‘ two new IDC MarketScape reports, “IDC MarketScape: Worldwide Core Banking Solutions 2015 Vendor Assessment — Global Providers for Asia/Pacific Banks” (Document # FI253683) and “Worldwide Core Banking Solutions 2015 Vendor Assessment — Regional Providers for Asia/Pacific Banks” (Doc # FI253709).
The two documents provide essential guidance examining existing core banking systems or planning for future investment opportunities in core banking solutions. IDC provides a newly developed methodology in assessing 19 global core banking solutions from 14 vendors, in terms of how the major vendors compare with each other, and what criteria are most important for financial institutions to consider when making core banking investment decisions.
Vendors assessed in these report include: Diasoft, ERI Bancare, FIS, Fiserv, ICSFS, Infosys, Oracle, Path Solutions, Polaris, SAP, Silverlake, Sopra, TCS, and Temenos.
“There are notable Asia/Pacific strongholds where one or two vendors are deployed in several top 10 financial institutions in the region. Vendor strongholds prove how vendors’ references in certain markets are crucial, allowing banks to see if similar models can be easily replicated within their own institutions, with greater certainty that local know-how, skills, and support are available.”
He points out that as a slew of core banking projects get started in the near term to the midterm, certain countries will likely see vendor incumbents get even more dominant, as they are best placed to clinch the upcoming.
The reports mention Silverlake’s stronghold in Southeast Asia, Polaris’ Intellect stronghold in India and Vietnam, and Oracle Corp.’s Oracle Banking Platform (OBP) reference in Australia.
The core processing platform is the heart and lifeblood of the institution, and the core solutions deployed is as unique as the institution itself. However, there are trends that surfaced that exemplified a successful core banking installation. Some of these attributes include:
- A clear understanding of the reason for core transformation – whether it is cost reduction, improved speed to market, enhanced customer experience, or some other metric. Not only will this support a successful implementation of a new core system, but it can also help guide the selection of an appropriate partner.
- A true partnership with the core system provider, in which both parties have vested interest in the success of the transformation.
- Core vendor knowledge and implementation of compliance requirements in all regions in which the institution operates, and a clear understanding of roles and responsibilities for both the vendor and the institution in meeting compliance mandates across the institution’s network.
- Integration of the core system with solutions from both within and outside the vendor’s suite of modules and ancillary solutions can be challenging, and the institution should have a full understanding of the vendor’s existing integration capabilities and resources available to handle the integration challenge, including skills, locations, and costs.
- When implementing changes within the core, strategically evaluate people and processes connected with the core and allow for (and encourage) changes to those processes before technology is implemented.
IDC MarketScape criteria selection, weightings, and vendor scores represent well-researched IDC judgment about the market and specific vendors. IDC analysts tailor the range of standard characteristics by which vendors are measured through structured discussions, surveys, and interviews with market leaders, participants and end users. Market weightings are based on user interviews, buyer surveys and the input of a review board of IDC experts in each market. IDC analysts base individual vendor scores, and ultimately vendor positions within the IDC MarketScape, on detailed surveys and interviews with the vendors, publicly available information and end-user experiences in an effort to provide an accurate and consistent assessment of each vendor’s characteristics, behavior and capability.
For more information about the research or to purchase this data, please contact Sheryl Fuertez at +65-6829-7758 or sfuertez @idc.com. To set up an interview with Michael Araneta, contact Emily Chia at email@example.com.
About IDC MarketScapes
IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of IT, telecommunications, or industry-specific suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor’s position within a given market. IDC MarketScape provides a clear framework in which the product and service offerings, capabilities and strategies, and current and future market success factors of IT, telecommunications, or industry-specific vendors can be meaningfully compared. The framework also provides technology buyers with a transparent foundation to allow companies to independently compare the strengths and weaknesses of current and prospective vendors.
About IDC Financial Insights
IDC Financial Insights assists financial service businesses and IT leaders, as well as the suppliers who serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing the banking, insurance, and securities and investments industries. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world’s leading technology, media, research, and events company. For more information, please visit www.idc.com/financial, email firstname.lastname@example.org, or call 508-620-5533. Visit the IDC Financial Insights Community at http://idc-community.com/financial.
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