The BCG Platinion Core Banking Architecture Report 2022 will provide you with a holistic, under the hood view of some leading core banking solutions – a market premiere as the first of its kind.
Building a future-proof architecture
In the age of digitalization, financial services are a highly dynamic market. Established institutions, Fintechs and Neobanks are competing for customers who think and act ever more digitally and have swiftly changing requirements. In addition, there are rapid technical and macroeconomic developments. To keep up in this environment, banks must be able to adapt quickly to changing circumstances. Whether they are able to do so in each case depends crucially on their ability to modernize their IT landscape.
The core banking system plays a decisive role here. For fintechs and neobanks, the right choice determines how swiftly they can start their core business. Established financial service providers, on the other hand, are often held back by legacy cores. This makes setting up a modern core banking system a challenge if they want to keep up with a constantly changing ecosystem of providers and competitors. Currently, more and more business leaders are making the decision to massively rebuild or completely replace the existing system of their bank.
But which core banking system is best for the individual institution? One thing is clear: “The best core banking system” does not exist. Each solution has its individual strengths and weaknesses. The decision for or against a particular product is an institution-specific weighing process. The bank strategy sets the direction. And the core banking system with its business-functional and technical capabilities must fit in with it.
To make the right choice, bank CIOs and their teams need to have detailed information on the architecture of the leading core banking solutions. It is also useful to have the profile of the business functions covered by each vendor to make an informed decision for or against a core banking system possible.
To help decision-makers get started on this topic, BCG Platinion has for the first time compiled a comprehensive overview of core banking solutions from leading vendors. It offers a holistic “under the hood” view of leading core banking solutions. The overview makes it much easier for CEOs and CIOs to find the right system for their bank.
Architectural principles of modern banks
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Core Banking Architecture Report 2022
Based on more than 20 years of experience in IT transformation of banks as well as in building neobanks, our experts have analyzed, evaluated and cataloged both the technical and functional capabilities of core banking solutions. In the resulting matrix, five leading providers are ranked according to their respective characteristics. Two overall scores were formed:
- Functional score: Measured via coverage if BIAN banking capabilities.
- Technical & operational score: This score is based on the following criteria
- Future-proof, scalable IT architecture
- Open and flexible architecture
- Solid IT operational Capabilities
- Fast time to market for new products
In addition, our specialists have compiled the five most important cornerstones of a future-proof IT architecture for modern, agile banks
- Microservice architecture for stability and scalability
- Event-based communication for positive customer experiences in real time
- Data-centric design for fast access
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About the Authors
Dennis Römer is a Manager at BCG Platinion and a core member of the Financial Institutions practice area and the Neobanking & Fintech initiative. Dennis has a long history of success supporting banks and other financial institutions in their digital transformations. His experience includes the build of new digital banks, core banking system and system integrator selections, IT cost efficiency programs and definition and implementation of digitization roadmaps.
Ludger KüpperManaging Director
Ludger is our Head of the Financial Institutions Practice Area of BCG Platinion EMESA with deep expertise in IT architecture and digital platforms for Financial Institutions. Since more than 20 years he advises international organizations, incumbent banks, fintechs and private-equity firms on IT strategy, tech transformation setup & execution, PMI and tech due diligence. His extensive experience is also often requested if it comes to Neobank and Digital Challenger Bank built.
Sebastian is an experienced banking and IT expert with strong hands-on experience in strategic, digital, implementation and architecture transformations. Having worked across industries such as banking, insurance and energy, Sebastian specializes on core systems in banking. Driven by the desire to connect client impact with sustainability he is taking sustainability into account as an important factor in transformation journeys. Sebastian is a member of the leadership team of BCG Platinion’s banking practice as well as the Green and sustainable IT topic.
Annika Melchert is a Manager at BCG Platinion based out of Dubai. She is leading the internal initiatives “Architecture Chapter” in Middle East as well as the “FinTech & Neobanking Group”. Driven by her passion for modern banking she worked with several fintechs and incumbent banks on their technology build, integration strategies, and digital transformations. Besides, she is hosting the “Fintech & Digital Banking Podcast”.