Banks Should Replace Core Banking Systems to Stay Competitive.Capgemini's new study "Core Banking Systems Survey 2008" shows system modernization and replacement is key to success PARIS Paris, in Greek mythology Paris or Alexander, in Greek mythology, son of Priam and Hecuba and brother of Hector. Because it was prophesied that he would cause the destruction of Troy, Paris was abandoned on Mt. -- A changing economy and increased regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. have put increased pressure on banks and their core banking systems. However, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the 2008 Core Banking Systems Survey* from Capgemini, almost all of the top retail banks globally are still using legacy systems dating from the 1960s and 1970s in domestic markets; despite the growth of packaged banking solutions in international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. over the last three decades. To sustain growth under recent banking pressures and continued regulatory requirements, it is essential for banks to have the right core banking systems in place. While a large bulk of package sales are still within Tier 3 and 4 banks(1), signs of larger, more strategic decisions are emerging with select Tier 1 and 2 banks that require sophisticated transaction processing Updating the appropriate database records as soon as a transaction (order, payment, etc.) is entered into the computer. It may also imply that confirmations are sent at the same time. Transaction processing systems are the backbone of an organization because they update constantly. software capable of handling large transaction volumes and giving banks the ability to gain 'a single view of the customer' in terms of their product usage. The survey provides recent trends, in-depth insights into the vendors and package solutions market and offers a guide for selecting and implementing a package solution in a structured, controlled and manageable way. Beyond the financial drivers, IT globalization globalization Process by which the experience of everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world. Factors that have contributed to globalization include increasingly sophisticated communications and transportation , increasing compliance and industry consolidation, are some of the other key motivators for core banking system replacement. As a result, the primary drivers for system replacement are shifting from cost reduction to growth. For example, regulations like SEPA SEPA® Soft enhancer of percutaneous absorption Therapeutics A technology that enhances transdermal drug delivery. See Transcutaneous therapy. (Single Euro Payments Area The Single Euro Payments Area (SEPA) initiative for the European financial infrastructure involves the creation of a zone for the Euro in which all electronic payments are considered domestic, and where a difference between national and intra-European cross border payments does ) have accelerated the payments industry transformation. To be among the major players in the new SEPA environment a bank must process at least five billion payment transactions a year. Tremendous industry consolidation, increased customer transaction demands and data management has led banks to feel increasingly limited by the capabilities of their core banking systems, and more than 90 per cent of banks interviewed are now willing to have a common architecture and a modular applications suite globally. "To react to these trends, a bank's key support systems need to be transformed," comments Gert Jan van Dorsten, principal consultant, Capgemini Netherland B.V, Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , "International legislation and regulation necessitate more transparent and understandable products. Higher flexibility, such as adaptable mortgage products is required by some customers,. Changes to pricing structures such as the introduction of risk-based pricing "Property type" redirects here. For other uses see Property (disambiguation). Risk-based pricing is a methodology adopted by many lenders in the mortgage and financial services industries. and package-based pricing are required to attract customers. These kinds of changes would enable banks to strengthen their competitive position on the market." Some players like Oracle who provide an integrated suite of standards-based, industry-specific applications for banks, insurance companies and capital market firms through their recently formed Global Financial Services Business Unit are leading the way in this market. While others like Misys and Callatay & Wouters are making in-roads with their strategic cooperation with SAP. There is a trend towards alignment with the architecture stacks and frameworks of the ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. giants SAP and Oracle in this market, and most independent vendors are also aligning themselves to one of these platforms. Gert Jan van Dorsten, principal consultant, Capgemini Netherlands B.V, Financial Services, concludes, "Package solutions have come a long way in terms of functionality, but implementations in tier one and two banks remain extremely large and complex. Banks willing to tackle planning and governance challenges can derive significant benefits by driving the replacement of outdated core banking systems, including meeting compliance demands, control over data management issues and a single view of their customer base. Banks should evaluate the packages available and work with technology partners to develop systems that deliver competitive advantage and enable them to prosper in this new environment." **Tier One *Core Banking Systems Survey 2008 The Capgemini 2008 Core Banking System Survey (CBSS CBSS Council of Baltic Sea States CBSS Craft and Boat Support System CBSS Coastal Border Surveillance System (MSSC) CBSS Closed-Breach Scavenging System (compressed air system for removing smoke from tank gun tubes) ) explores the major core banking systems available in Europe, North & South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. and Asia-Pacific. Provided by Capgemini's Global Financial Services Industry & Enterprise Packages Centre of Excellence, the survey highlights the core banking solutions for top-tier banks that have a strong position in the world's top financial markets and require a solution in more than one country. The study provides insight on banking trends, package selection criteria, implementation methods and the package vendors providing solutions in the banking arena. Download your free copy at www.capgemini.com/corebanking About Capgemini Capgemini, one of the world's foremost providers of consulting, technology and outsourcing services, enables its clients to transform and perform through technologies. Capgemini provides its clients with insights and capabilities that boost their freedom to achieve superior results through a unique way of working - the Collaborative Business Experience - and through a global delivery model called Rightshore[R], which aims to offer the right resources in the right location at competitive cost. Present in 36 countries, Capgemini reported 2007 global revenues of EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 8.7 billion and employs over 83,000 people worldwide. Capgemini provides deep industry experience, enhanced service Enhanced service is service offered over commercial carrier transmission facilities used in interstate communications, that employs computer processing applications that act on the format, content, code, protocol, or similar aspects of the subscriber's transmitted information; offerings and next generation global delivery to serve the financial services industry. With a network of 15,000 professionals serving over 900 clients worldwide, we move businesses forward with leading services and best practices in Banking, Insurance, Capital Markets and Investments. For more information, please visit www.capgemini.com/financialservices. 1 Tier 1 banks: assets greater than 400bln euros; Tier 2 banks: assets between 100-400bln euros; Tier 3 and Tier 4 banks: assets less than 100 bln euros |
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