The world has been waiting with bated breath for US to open the doors for core banking transformation. Reams have been written (digitally and on papyrus) and good time spent discussing with one objective question, When? My question is Why?
Why should a bank that is in steady state of equilibrium unnecessarily assume the risk of transformation. As such there are plethora of systems and working in orchestration, passed fed audits and is as clean as a whistle. The banks are able to offer cutting
edge customer service digital or otherwise and more important they have the muscle to offer relationship based pricing. Why upset the apple cart?
Yes, there will be a few business cases for point solutions where replacement will be necessary. For example payments hub. In such cases a low risk modular approach will be better suited. Here again regulation and compliance will be of utmost priority. Recall
the recent set backs to banks when it came to payment processing.
A bank must first build a repository of solutions and associated information architecture that is risk based. Risl can be regulatory / compliance, customer service or any other choosen parameter that will be of impact. From there on, plan a transformation
where ever there is a business case. The question to be asked is Why? not When.