Core banking transformation at the tipping point?

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:

  1. Desire for rapid shift change over incremental enhancement
  2. An interest in ‘industrializing’ the non-differentiating processes in the bank and increasing the flexibility of differentiating processes
  3. Reducing internal development costs
  4. Reduced complexity

There are also reasons that banks don’t want to adopt vendor packages:

  1. Siloed organizational structures impede the adoption of non-siloed systems
  2. Cost and complexity of core banking transformation programs
  3. 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?

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