2014 analysis
At long last there were signs of a modest upturn when we collated all of the 2014 data. As with the economic upturn as a whole, not everyone was benefiting, with those in the ascendancy being relatively few. Nevertheless, there will have been a collective sigh of relief that 2013 seemed to have been the low point. In the three main categories (universal banking, treasury and capital markets, and private banking), there are now between one and three clear market leaders, picking up the bulk of the deals. It will not be a great surprise to industry watchers that nearly all of these are focused companies with one flagship core product. The many other systems that have been brought under single roofs by market consolidation are mostly falling away. Another trend appeared to be something of a renaissance
for some of the smaller, local and regional suppliers, again typically without the complication of multiple systems. They appeared to be gaining in 2014 from the more piecemeal approach to core system renewal by some of the large, international banks. Many such banks have given up on their grand plans of past years whereby they were going to standardise all international operations on a single core. In part through painful experience, they are increasingly opting instead for a more pragmatic approach of picking the best system for the local market and, sometimes, giving autonomy back to the country operation for selecting this. The one area where this isn’t the case is private banking, where the opposite is true, with moves by a number of tier one and two banks to rationalise systems across the globe. While the quantity of deals went up slightly, the size of deals did not. There were very few high-end domestic or multi-site decisions in 2014, once more. At least it could be said that a number of the top end banks appeared to have restarted analysis of core systems. As a few, such as CBA in Australia, have emerged from their multi-year projects, with others on-going after a number of years, it seemed a next wave might be on the way. We would expect SAP to feature in some of the analyses, so too perhaps Oracle with OBP. In the meantime, the vast bulk of the universal core
banking systems market remained the third and fourth tier banks in emerging markets. The two runaway leaders in 2014, as usual, were Temenos with T24 and Oracle FSS with Flexcube. They both brought in good hauls of lower end deals. Temenos showed its resilience again in terms of the number of deals for T24. Its 37 in 2014 was a slight increase on the 35 of 2013. Its only deals in Western Europe were three low-end ones in the UK, including 6 Towns Credit Union and Reall (previously Homeless International), a microfinance institution focused on the homeless. There was also a small private banking deal in Luxembourg. There was nothing in Central or Eastern Europe. Starting to build on its heightened presence in the US, it gained two small clients, plus Bermuda Commercial Bank. In a traditional
42
market of strength, Canada, it added FirstOntario Credit Union and a small domestic bank. More productive for Temenos was Asia/Asia Pacific, with
four wins in Vietnam, two in the Philippines, and one each in India, Indonesia, Myanmar and Taiwan, plus one deal
spanning China, Hong Kong and Cambodia. The Middle East was fairly healthy too, with six deals in six countries, so too Africa, with seven deals in seven countries, of which three were in North Africa. In Latin America, there were only solitary deals in Bolivia and Venezuela. Oracle FSS with Flexcube saw 27 new-name wins, a good haul and well up on 2013’s 15. It was a fairly similar pattern, geography-wise, to Temenos, except without any North American side to it. Oracle FSS’s strongest territory was Asia/Asia Pacific, with three deals in the Philippines (so a busy year in this country), two in Myanmar, one each in Laos, China, Pakistan, Cambodia and Afghanistan, plus a three-site deal for Pakistan, Afghanistan and Tajikistan. There was also a single deal in New Zealand. It was a like-for-like tally for Oracle FSS in Africa – six
deals, six countries, although only one of these was in North Africa. It was sparse pickings in Western Europe – Hampden & Co in the UK and a deal in Denmark, plus one each in Cyprus and Malta – and Central Europe – a solitary win in Belarus. The Middle East only produced single deals in Lebanon and the UAE, while the sole Central and South American win was in a former Temenos stronghold, Mexico (Banco Actinver). The nine Finacle deals for Infosys were fairly small,
compared with past wins for the Indian heavyweight. It had one in the Philippines, Producers’ Savings Bank, and the rest were spread around low-end banks in Africa and Asia, bar the international operation of an Indian bank in the UK. The Finacle business had posted a 5.4 per cent decline in quarter-on-quarter revenue for Q2 FY2015 in October 2014 and, at present at least, the larger-end deals of previous years are eluding it. Those nine deals in 2014 were the same in terms of quantity as 2013. Here, as with the other Indian domestic suppliers, we did not count deals to small domestic Indian banks and co-ops once more. One supplier that had a poor year was Path Solutions.
It brought in a mere four new wins, in UAE, Saudi Arabia, Gambia and Sudan. This was six fewer than in 2013. We again asked all suppliers to flag any Islamic banking deals amidst their conventional banking wins and, overall, it looked a depressed year in this sector. It has often been driven by spikes of activity in individual countries, as a result of regulatory changes, but there did not seem to be any of these last year. Some of the emerging countries that might have been expected to produce selections were quieter because of economic and/or political unrest.
Market Dynamics Report
www.ibsintelligence.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152 |
Page 153 |
Page 154 |
Page 155 |
Page 156 |
Page 157 |
Page 158 |
Page 159 |
Page 160 |
Page 161 |
Page 162 |
Page 163 |
Page 164 |
Page 165 |
Page 166 |
Page 167 |
Page 168 |
Page 169 |
Page 170 |
Page 171 |
Page 172 |
Page 173 |
Page 174 |
Page 175 |
Page 176 |
Page 177 |
Page 178 |
Page 179 |
Page 180 |
Page 181 |
Page 182 |
Page 183 |
Page 184 |
Page 185 |
Page 186 |
Page 187 |
Page 188 |
Page 189 |
Page 190 |
Page 191 |
Page 192 |
Page 193 |
Page 194 |
Page 195 |
Page 196 |
Page 197 |
Page 198 |
Page 199 |
Page 200 |
Page 201 |
Page 202 |
Page 203 |
Page 204 |
Page 205 |
Page 206 |
Page 207 |
Page 208 |
Page 209 |
Page 210 |
Page 211 |
Page 212 |
Page 213 |
Page 214 |
Page 215 |
Page 216 |
Page 217 |
Page 218 |
Page 219 |
Page 220 |
Page 221 |
Page 222 |
Page 223 |
Page 224 |
Page 225 |
Page 226 |
Page 227 |
Page 228 |
Page 229 |
Page 230 |
Page 231 |
Page 232 |
Page 233 |
Page 234 |
Page 235 |
Page 236 |
Page 237 |
Page 238 |
Page 239 |
Page 240 |
Page 241 |
Page 242 |
Page 243 |
Page 244 |
Page 245 |
Page 246 |
Page 247 |
Page 248 |
Page 249 |
Page 250 |
Page 251 |
Page 252 |
Page 253 |
Page 254 |
Page 255 |
Page 256 |
Page 257 |
Page 258 |
Page 259 |
Page 260 |
Page 261 |
Page 262 |
Page 263 |
Page 264 |
Page 265 |
Page 266 |
Page 267 |
Page 268 |
Page 269 |
Page 270 |
Page 271 |
Page 272 |
Page 273 |
Page 274 |
Page 275 |
Page 276 |
Page 277 |
Page 278 |
Page 279 |
Page 280 |
Page 281 |
Page 282 |
Page 283 |
Page 284 |
Page 285 |
Page 286 |
Page 287 |
Page 288 |
Page 289 |
Page 290 |
Page 291 |
Page 292 |
Page 293 |
Page 294