TECH BUYER Mar 2021 - IDC Perspective - Doc # AP47255221
Pricing for Cloud-Based Core Banking Systems: Pricing Models Evolve in the New Wave of Core Banking Investment
The benefits of migrating to fourth-generation core banking and taking advantage of cloud-based, software-as-a-service (SaaS) licensing arrangements and pricing provide a large opportunity that should be immediately considered and pursued. Refer to the references in the previous section on related research to provide further background on what constitutes viable fourth-generation core banking systems and the rationale for near-term migration.
Michael Araneta, associate VP, IDC Financial Insights Asia/Pacific says, "Migrating to fourth-generation core banking systems has made it much easier to negotiate contracts and provide true-value alignment between core banking vendors and their banking clients by using stage 4 contracting and pricing via SaaS without defining and agreeing upon usage bands in advance. Regardless of how drastic the change in future volumes may be, pricing will be adjusted to reflect ongoing aligned value.
Steve Shipley, senior executive adviser, IDC Financial Insights, Asia/Pacific adds, "With reduced costs and risks, migrating to fourth-generation core banking and taking advantage of cloud-based, SaaS pricing make a great deal of sense. There has never been a better time to consider transforming core banking. Our research also shows that a large wave of core banking transformation is already underway."