IBSi FinTech Journal Feature Focus: Core Banking Systems

So, you are thinking your bank’s core software modernisation is long overdue and you are ready to take the plunge. But undoubtedly you have heard many tales of horror about such projects going awry, with millions of dollars and many years wasted, relationships with vendors ruined and the workforce disillusioned… and the legacy system still in place.

So what does it take for a core system replacement programme to be successful – or at least ensure that the most common mistakes and pitfalls are avoided? Where do implementations tend to go wrong and how does one pre-empt it?

While the questions and answers may be quite unending, this Feature Focus looks to identify the seven phases of a typical core banking transformation, what they are about and what they mean to the project, what happens in each phase, what to look out for and more importantly how to avoid some of the errors that are but too common and sometimes, inviting.

Having successfully executed over 40 large technology transformation programmes, from fast-track eight-month implementations to large end-to-end four-year programmes, there are indeed quite a few things that our experts have learnt along the way, and this is an attempt to share the key ones.

And as always, every edition of our flagship IBSi FinTech Journal and its Feature Focus section includes independently written case studies, based on the interviews with the project participants who don’t hold back on sharing their experience.

IBSi FinTech Journal’s Core Banking Systems Feature Focus includes:

Analysis – Core banking implementation: changing engines at 30,000 feet

Core banking implementations have a striking resemblance to changing engines while a plane is up in the air, as the context here is not very different. The bank that is implementing the solution in most situations is a live, running and operational entity, and when the core engine that runs the bank has to be changed, it has to be done with zero disruption to its operations and minimal inconvenience to its customers.

Ask anyone who has recently gone through an implementation, and you would hear them totally agree, and also have to say, that this is easier said than done!

Case Study: Raiffeisen and Avaloq – Esprit de Corps

Mathias SchĂĽtz, CEO of Arizon, a Swiss joint venture (JV) between co-operative bank Raiffeisen and banking software specialist Avaloq, discusses the reasons for its foundation and how Arizon intends to migrate 300 banks to a new platform by the end of 2017.

Case Study: Adarsh Credit Co-operative Society and SAP – SAP ASAP

India-based Adarsh Credit Co-operative Society has been a pioneer with its implementation of almost wall-to-wall SAP software, including for channels and core transformation. The roll-out has been fast and smooth, with the institution reaping the benefits, particularly in its push to aid financial inclusion in the country.

What is the IBSi FinTech Journal Feature Focus?

Each issue of our flagship monthly IBSi FinTech Journal includes a Feature Focus, dedicated to a specific area of banking technology. The Feature Foci are part of the IBSi FinTech Journal subscription.

IBSi FinTech Journal Feature Foci cover a wide range of subjects pertinent to the financial technology industry worldwide. They include detailed case studies, analysis, interviews and other feature articles.

Each publication features independently researched and compiled material, with no advertorial or contributed articles. All articles are written by IBS, and we believe that this dedication to quality is unique among publications in the banking/financial services technology space.

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