‘Old school’ rules?

Macquarie Bank ©Mal Booth, Flickr

It would seem that for all the chatter about component-based core system replacement and gradual renovation, plenty of banks are still going the ‘rip and replace’ route.

Take Macquarie Bank, for example. In 2012, one of its senior managers called core system overhauls ‘old school’ and that the best model was to supplement existing platforms with layers on top for services such as apps.

In 2013, however, the bank went ‘old school’ and signed for a new core system, SAP for Banking. It has recently reported reaching a milestone in this five-year, AU$250 million project.

Have European banks given up on core banking system replacements?

© www.itrw.net

Despite the emergence of new technology and increasing competition, it seems the replacement of core banking systems is not on the agenda for European banks. Instead, banks are investing in niche IT projects to not only maintain their existing systems, but to introduce incremental changes, which can provide a quick return on investment (ROI) and meet their business and consumer needs.