IDC Financial Insights : Ranks Worldwide Core Banking Vendors in New IDC MarketScape

New report guides banks through landscape of traditional and new providers to support transformational IT initiatives

IDC Financial Insights today announced the availability of a new IDC MarketScape report, IDC MarketScape: Worldwide Core Banking Solutions 2015 Vendor Assessment of Global Providers for North American Banks (Doc #FI253356), which provides valuable guidance when examining existing core banking solutions and/or planning for future investment opportunities. Together with the accompanying report, IDC MarketScape:Worldwide Core Banking Solutions 2015 Vendor Assessment of Regional Providers for North American Banks (Doc #FI253357), IDC provides an assessment of 19 global core banking solutions in terms of how the major vendors compare with each other and what criteria are most important for financial institutions to consider when making core banking investment decisions. Vendors featured in this report include: ERI Bancaire – OLYMPIC Banking System, FIS – Profile, FIS – Systematics, Fiserv Signature, Infosys Finacle, Oracle FLEXCUBE, SAP Transaction Banking, Sopra Banking Software – Sopra Banking Amplitude, Sopra Banking Software – Sopra Banking Platform, Tata Consultancy Services (TCS) BaNCS, and Temenos T24.

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Using the IDC MarketScape model, IDC Financial Insights compared 19 core banking solutions in the global marketplace. Using an algorithm to analyze client distribution by geography, IDC Financial Insights grouped these 19 solutions into "Global reach" and "Regional reach" solutions to demonstrate what seems to be each solution's current dominant market. This report includes the 11 solutions with Global reach in the context of the North American market. Through in-depth interviews with these providers and feedback from each provider's customers, IDC Financial Insights reports:

• Ten of the eleven solutions with Global reach are closely grouped within the top two categories, Leaders and Major Players. All solutions ranked within these categories are very close together with regard to the strategic focus of the vendor and the capabilities of the provider based on reference account feedback – IDC found no significant outliers within the two categories.
• The providers in the Major Players categories tended to be more traditional providers and solutions in North America. All were deemed as having capable solutions for core transformation for North American institutions.

According to Karen Massey, Senior Analyst, Banking, at IDC Financial Insights, "We are seeing a significant increase in core banking modernization globally and expect North American institutions to closely follow with strategies to take out costs and complexity, address risk and compliance issues, and improve competitive posture against both U.S. and non-U.S. based institutions."

The core processing platform is the heart and lifeblood of the institution and the core solutions deployed are as unique as the institution itself. However, trends have surfaced that exemplify a successful core banking installation. Some of these attributes include:

• A clear understanding of the reason for core transformation – whether it's cost reduction, improved speed to market, enhanced customer experience, or some other metric. Not only will this support a successful implementation of a new core system, but it can also help guide the selection of an appropriate partner.
• A strong relationship with the core system provider. In fact, a true partnership in which both parties have vested interest in the success of the transformation.
• Core vendor knowledge and implementation of compliance requirements in all regions in which the institution operates, and a clear understanding of roles and responsibilities for both the vendor and the institution in meeting compliance mandates across the institution's network.
• Integration of the core system with solutions from both within and outside the vendor's suite of modules and ancillary solutions can be challenging, and the institution should have a full understanding of the vendor's existing integration capabilities and resources available to handle the integration challenge, including skills, locations, and costs.
• When implementing changes within the core, strategically evaluate people and processes connected with the core and allow for (and encourage) changes to those processes before the technology is implemented.

"More and more banks are committing to transformational IT initiatives that will take them into tomorrow's world of financial services. This IDC MarketScape is a timely analysis of the broad scope of vendors and solutions, guiding banks through the landscape of traditional and new providers that can help with that transformation," concluded Jerry Silva, Research Director, Global Retail Banking, IDC Financial Insights.

IDC MarketScape criteria selection, weightings, and vendor scores represent well-researched IDC judgment about the market and specific vendors. IDC analysts tailor the range of standard characteristics by which vendors are measured through structured discussions, surveys, and interviews with market leaders, participants, and end users. Market weightings are based on user interviews, buyer surveys, and the input of a review board of IDC experts in each market. IDC analysts base individual vendor scores and ultimately vendor positions within the IDC MarketScape on detailed surveys and interviews with the vendors, publicly available information, and end-user experiences in an effort to provide an accurate and consistent assessment of each vendor's characteristics, behavior, and capability.

For additional information about this report or to arrange a one-on-one briefing with Karen Massey please contact Sarah Murray at 781-378-2674 or [e-mail]. Reports are available to qualified members of the media. For information on purchasing reports, contact [e-mail]; reporters should email [e-mail].

About IDC MarketScape

IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of IT, telecommunications, or industry-specific suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor’s position within a given market. IDC MarketScape provides a clear framework in which the product and service offerings, capabilities and strategies, and current and future market success factors of IT, telecommunications, or industry-specific vendors can be meaningfully compared. The framework also provides technology buyers with a transparent foundation to allow companies to independently compare the strengths and weaknesses of current and prospective vendors.

About IDC Financial Insights

IDC Financial Insights assists financial service businesses and IT leaders, as well as the suppliers who serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing the banking, insurance, and securities and investments industries. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world’s leading technology, media, research, and events company. For more information, please visit www.idc.com/financial, email [e-mail], or call 508-620-5533. Visit the IDC Financial Insights Community at http://idc-community.com/financial.