Core banking systems fall into four categories:
- an asset to your business that helps it grow
- a commodity that does the hard work in the background
- a liability that slowly strangles the growth of your business
- an immediate threat that could harm your business in the short term
Where do you stand on this scale? And where do you want to be?
Asset | Commodity | Liability | Threat | |
Number of production releases per quarter | More than 100 | More than 10 | 2 to 10 | Less than 2 |
Core banking run cost (% of the overall run cost) | Dependent on business metrics | Less than 3% | 3% to 10% | More than 10% |
Core banking infra cost (% of core banking run cost) | Dependent on business metrics | Less than 40% | 40% to 60% | More than 60% |
Code versions different from the most current one | Zero (there is only one code version) | Less than 2 | 2 to 4 | More than 4 |
Critical outages in the last 6 months | Zero (multi-zone, multi-region, multi-cloud) | 1 to 2 | 2 to 4 | More than 4 |
Threat of vendor stopping support or forcing an upgrade | Zero (the vendor is the platform) | Low | Medium | High |
Threat of tech experts leaving | Zero (open-source, microservices, no single expert) | Low | Medium | High |
Data available for analytics | Real-time streaming data, events, files | Structured and unstructured | OLAP based analysis (warehouse) | Flat files in batches, tables |
Ability to handle scale-up in volumes | Instant scaling | Horizontal scaling without shutdown | Requires manual provisioning of hardware | Needs rearchitecting |
Number of core systems | One core for all products | 2 cores | Multiple, for different products (banking, cards, etc.) | Multiple, even for the same product (e.g., deposits) |
Ecosystem connectivity | RestFul APIs only | Mainly API-based, but can have multiple formats | Mainly API-based, but can have multiple formats | Proprietary integration only |
Learn more about the Pismo platform for banks: