Demand for core banking software is anticipated to increase in 2022 as institutions implement digitalization initiatives and confront the pandemic's repercussions and prospects. In particular, while considering public cloud deployments, bank CIOs should evaluate both established and up-and-coming suppliers.
Strategic Planning Hypothesis
By the end of 2023, both the public and private cloud will account for 5 percent of commercial off-the-shelf (COTS) core banking installations, for a total market share of 10 percent.
Definition/Description of the Market
Global retail core banking (GRCB) is defined as a backoffice banking system that conducts daily transactions and updates accounts and other financial records. Typical core banking systems (CBSs) feature deposit, loan, and credit processing capabilities, as well as interfaces to general ledger systems and reporting tools. This list evaluates vendors based on the multicurrency products they provide to support the financial transaction management of retail banks.
On the basis of the worldwide and retail focus of the software, we have omitted Islamic banking providers, the majority of which do not support regular retail banking features, and other vendors whose solutions do not fit the stated criteria. In addition, this research emphasises the global capabilities of CBS service providers. It neither mentions nor addresses the localization capabilities that CBS vendors provide. These are instead covered in the collection of studies published in the Research Index: Core Banking Selection Criteria That Matter, the titles of which are also available in the section containing suggested reading.
Over the years, the definition of a CBS has not altered considerably. Nonetheless, six significant themes are emerging and becoming more ubiquitous in the core selection decision-making process:
> Composable Technologies: Configure to Specifications
> The Cloud: Core Financial Services Move to the Cloud
> The Buy Option Is Prevalent: Banks are no longer building CBS.
> Standards' Rise: Beyond Internal Operational Agility
> Ecosystems: Beyond the Basics of Ecosystems (But They Are Linked to It)
> Commoditization: Business Functions Are Becoming Commoditized
These market trends must be carefully studied by CIOs, and to aid in this analysis, they are elaborated on in the Market Overview section.