Western Europe Core Banking Solutions 2005-2009 Forecast: Is It Time for Western European Banks to Hurry Up?

This Financial Insights study analyzes the demand for and offering of core banking systems in Western Europe. Primary factors affecting the demand for core banking systems, including business, structural, and technological aspects (and their interactions), are explored, and key market opportunities for core banking platforms compared with homemade systems are identified.

Through a Financial Insights/IDC survey and IT spending forecast numbers, this research provides a complete picture of the current situation and the expected future evolution.

Core banking replacement is becoming increasingly key to remain successful in the banking arena. Several banks have this clearly in mind and are starting major banking transformation projects that will enable them to be better positioned to face the future market challenges. Indeed, banking transformation is strictly linked to core banking enhancement.

In particular, according to Daniele Bonfanti, program manager for European IT Opportunity: Financial Services research, "There is a sea change in the industry, with banks eager to replace their core banking systems. However, internal IT departments still play a central role in core banking initiatives, and the only way IT vendors can compete is to demonstrate a technology advantage and really strong banking competences. For this reason, service oriented architecture (SOA) should be part of the evolutionary plans of every ISV that wants to compete in this market."