Boston, July 16, 2012 – A new report from Aite Group analyzes the state of the U.S. core system replacement market and outlines the key trends shaping its future. This report forecasts growing replacement volumes and highlights the key business drivers that will lead to increased momentum. It also compares U.S. bank and credit union core system offerings and projects change in the competitive landscape.
Core system replacements continue to be a necessary evil for U.S. financial institutions. Aite Group estimates that at least 40% of these institutions should be at least considering a core replacement that would reduce their costs and help them operate more efficiently, remain competitive, and achieve their strategic goals. Though many institutions urgently need to replace their cores, less than 400 did so during each of the last three years. Aite Group forecasts an increase in U.S. core replacement momentum over the next few years and a total IT spend of approximately US$5 billion.
“Core replacement initiatives present high cost and risk levels, and institutions have a tendency to proceed with caution even in the best of times,” says Christine Barry, research director with Aite Group and co-author of this report. “Many banks are still struggling, but pent-up demand, regulatory requirements, and new market opportunities will drive core replacements."
Core system vendors profiled in the report include CSC, FIS, Fiserv, Harland, Jack Henry, and Open Solutions. The report also mentions Accenture, COCC, Corelation, CSI, ERI, FSI, Infosys, Misys, Oracle, Path, Polaris, SunGard, TCS, Temenos, and VSoft.
This 63-page Impact Report contains 20 figures and 23 tables. Clients of Aite Group’s Retail Banking or Wholesale Banking services can download the report.