Core Modernization for Large Banks
Large North American banks lag behind their global counterparts in implementing new core processing systems. These banks have begun to evaluate the costs and benefits of modernizing their core systems and to consider approaches to implementation. Because modernization is complex and risky, large banks need to develop a phased implementation strategy. This TowerGroup Research Note discusses the benefits of implementing a new customer information system (CIS) as the initial phase of core systems modernization.
• Large North American banks continue to rely on core processing systems from the 1970s and1980s, whose developers did not anticipate the transition from paper to electronic payments or the consumer demand for real-time information.
• A number of factors are causing many large North American banks to consider modernizing their core systems.
• Because the modernization of core systems is both complex and risky, large banks need to develop a phased implementation strategy for core modernization.
• A distinct advantage of implementing a new customer information system (CIS) is that it can be layered on top of existing customer systems using a master-slave relationship.
• Following the full establishment of a master CIS, the bank can begin converting customer accounts to the new core accounting systems using a similar phased approach.
Read the full Core Modernization for Large Banks Case Study.