Core Banking in Asia/Pacific: 2007 Deals

This Financial Insights report examines the core banking environment for Asia/Pacific (AP) in 2007. Upgrades of core banking systems remain of utmost strategic importance to financial institutions, but 2007 saw considerable changes in the number of core banking deals in the Asia/Pacific region. Based on our qualification criteria of what constitutes a core banking project, the number of deals has notably decreased in the region.

Abhishek Kumar, senior research analyst, Asia/Pacific Banking Advisory Service, states, "The decrease in the number of core banking deals really is indicative of the evolution and maturation of the core banking landscape in the Asia/Pacific region." With more and more financial institutions completing their core banking strategies, Kumar sees the focus now shifting to the next stage with banks looking to augment core solutions with front office-based modules and solutions. On the other end of the spectrum, vendors are now able to provide a much wider breadth of services with improved implementation skills, thanks to consolidation and establishment of numerous strategic partnerships. Kumar concludes, "Both financial institutions and core banking vendors now have a much deeper understanding of the requirements of core banking implementations. Ultimately, the onus is still on the banks to understand and convey their core infrastructure needs in order to successfully implement these solutions."