Core banking market stagnation set to lift

Core banking market stagnation set to lift

The market for core banking systems has stagnated since 2008, with deal volume down by 18% during the past year, according to Forrester Research.

The analyst group surveyed 17 vendors of globally deployed banking platforms on their 2009 deals and evaluated a total of close to 1100 deals.

The report shows Oracle and Temenos remaining top of the vendor pyramid as power sellers, each reporting a minimum 35 new banking platform clients in at least six regions of the world.

However, the global financial crisis has taken its toll, with no consistent pattern emerging in vendor sales tactics or consolidation strategies says Forrester.

Research from Celent suggests better times may be around the corner, predicting growth in the market to $4 billion by 2011, from $3.5 billion last year.

"Coming out of the economic crisis, the banks were cautious in their IT spending, but spending has started to rise," says the group, pointing to the developing regions of Asia Pacific and Latin America and emerging market in Eastern Europe, Middle East Asia and Africa as having the most potential for growth.

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