U.S. Core Banking Solutions 2006?2010 Spending Forecast: Ready for Transformation

This Financial Insights report analyzes the demand for and landscape of core banking solutions in the United States. This report also explores the business, infrastructure, and technology drivers and relationships surrounding core banking transformation and provides a five-year IT spending forecast. Key core banking service providers are also reviewed. U.S. banks are beginning to seriously consider core banking transformation. For years, U.S. banks have postponed this conversation and continued to patch and modify aging legacy core systems to keep pace with consolidation activity and competition and address a changing regulatory environment. Banks, especially the largest institutions, now possess complex application architectures and spaghettilike networks that are typically not well documented and expensive to maintain.

"U.S. banks understand the benefits and competitive positioning of a modern core banking solution, but have been slow to transform their legacy systems," notes Karen Massey, senior analyst, Consumer Banking and Credit. "Recent core transformation success stories in the United States and overseas, coupled with advances in core and integration solutions, are sparking core transformation activity in the United States."