This article from ComputerWeekly asks whether a tipping point has been reached where banks will begin to adopt vendor packages for core banking transformation and abandon legacy platforms.
I think the concept of adopting vendor packages has been gaining ground and there are a few key reasons for this:
- Desire for rapid shift change over incremental enhancement
- An interest in ‘industrializing’ the non-differentiating processes in the bank and increasing the flexibility of differentiating processes
- Reducing internal development costs
- Reduced complexity
There are also reasons that banks don’t want to adopt vendor packages:
- Siloed organizational structures impede the adoption of non-siloed systems
- Cost and complexity of core banking transformation programs
- Lack of precedent, or packages are immature for their market/segment/region
So, is it a tipping point or just modest organic growth in core banking transformation investment?