This document discusses the makings of a resurgence of core banking modernization among Asia/Pacific banks. The new era will be marked by banks' preference for a platform-based, componentized, and open API-enabled core banking systems. This will support banks' intentions to be as digital as possible. This report also highlights the propositions of four software providers that can support this drive toward banks' digital core.
Michael Araneta, AVP for IDC Financial Insights Asia/Pacific comments, "Across many years of research on core banking transformations, we have always recognized core banking modernization for their significant pull-through — they inevitably cause an increase in IT spending in other noncore areas. The pull-through becomes stronger this time around as the organization will have to skill up in many areas, such as information architecture discipline, knowledge on open API frameworks, and competencies in iterative development. All these make core banking modernization truly transformative."
"Banks now will have to assess how transformation of their core system will be a key part of their overall transformation. The decision will most likely be to not decommission the old core system and replace it with a new one but rather to abstract as much business logic from their current core and iteratively improve digital capabilities around that core," adds Sneha Kapoor, senior research manager, IDC Financial Insights Asia/Pacific.