IBS Journal February 2018 EDITOR’S NOTE IT’S THAT OLD CONUNDRUM – WHEN DO BANKS DITCH LEGACY?
THIS IS THE CORE BANKING ISSUE, IN WHICH WE TAKE A LOOK AT THE CHOICES FACING ALL BANKS IN UPGRADING THEIR CORE SYSTEMS AND TALK TO THE VENDORS WHO SAY THEY HAVE MOST OF THE ANSWERS
Bill Boyle Senior Editor
billb@ibsintelligence.com
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his is our Core Banking issue, the ‘bread and butter’ issue in which we cover the most important decisions most banks will ever make and the freedoms they have to
break free of convention and surprise the world. We also take a look at the other side of the banking coin – those who intend to stay exactly where they are now, thank you very much.
However, the challenger banks, the fintechs and their friends in the various Silicon Valleys, Vales and Roundabouts are getting ready to finally either take on the big banks or embed themselves, parasite-like, in their eco-systems. They have a number of strategies to follow and the banks have an equally large number of ploys to keep them at bay.
This period is beginning to look like the period for personal computer sales that started to drop off a cliff from April 2011 when research group, IDC – which used slightly different methodologies from Gartner – said that global shipments were 80.56 million, a year-on-year fall of 3.2% from 83.2 million in the first quarter of 2010, and down more than 10% in the US. The top three PC makers – HP, Acer and Dell – all saw big declines in shipments. As the smartphone took over as the consumer’s device of choice and the laptop replaced the desktop PC in most businesses, Microsoft and Dell massively revamped their business models and headed into the cloud with a swift change of strategy.
We are at a similar inflection point in core banking. There is not a single bank I have talked to in the last eight months which is
not in the process of reviewing its legacy systems. The fintech revolution has shown the banks, as we say on page 22, that: “The sooner a bank starts a legacy migration, the sooner it can reap the rewards.”
In this issue we talk to the largest core banking system suppliers – including Fis, Fiserv and Temenos – and find out what would motivate them to move to a new Core Banking system. More importantly, we ask them what is the best way to effect a successful transformation.
A theme running through all of our interviews is how regulation is affecting the bank’s plans and whether they are embracing it as an enabler or an enemy. PSD2, GDPR, MiFid 2 and others are chipping away at the freedom banks have held dear – but what real effects will they have? We asked the question – whether we got a good enough answer, you will have to be the judge.
Tragedy intruded into our world this month when our graphic designer, Shweta Jaiswal, was killed in a road traffic accident. Shweta had only been at IBS Journal for a few short months but had already made an impact on us, both professionally and socially. At a recent work get together she was bursting with ideas for the coming editorial year. She was a joy to work with, a quick learner who took great pride in making the pages of our journal look as appealing as possible. Our hearts go out to her family at this sad time. May her soul rest in peace.
www.ibsintelligence.com
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