IBS Journal March 2015
For all the chatter about component-based core system replacement, in its different iterations, plenty of banks are still going the ‘rip and replace’ route.
It is interesting to see Macquarie Bank pressing on with the latter approach after 2012 pronouncements by a now departed senior manager that core system renovations were ‘old school’ (see p9).
As our Sales League Table shows, traditional core system replacement remains by far the most prevalent model. Many of these projects will be in phases but they don’t constitute a new way of doing things. As such, it will be interesting to see how PNC Financial Services progresses in the next few years as it puts IBM’s IFW data model and the industry- derived BIAN process definitions at the heart of its intended transformation (see p44).
Part of the problem is the lack of truly standards-based component offerings that can underpin the theory. By now, with all of the work done in the last decade within BIAN (IVN, as was) and nearer three decades within IFW, it might be thought that we’d have an industrialised framework to which vendors, new and old, would be building plug-in ‘best of breed’ components. Constructing a new systems landscape would be akin to Lego.
However, there is no industry consensus. Oracle sits outside of the SAP-initiated BIAN, while the engagement levels of those vendors that are members is mixed. More of a problem is the inability of existing vendors to break down their long-standing, monolithic systems into components. Most of them have been attempting to do so for a few years but to describe the results as patchy would be generous.
So for the time-being it is business as usual. At least, when you factor in comings and goings from the Sales League Table, we can finally see a slight upturn in the market. There will be a sigh of relief among most vendors and, while high-end deals were almost non-existent, a recent pick-up in the analysis and pronouncements of intent by tier one and two banks is another hopeful sign. Those vendors that have remained focused on single flagship systems are prospering and will welcome the news. But there are significant losers among the rest, many of which are now heavily reliant on maintenance revenue from their existing customers. So, somewhat perversely, some of these might be less enthusiastic about a pick-up in replacement activity.
Tanya Andreasyan, Editor
© IBS Intelligence 2015
www.ibsintelligence.com
5
editor’s note
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