Core banking systems fall into four categories:

  1. an asset to your business that helps it grow
  2. a commodity that does the hard work in the background
  3. a liability that slowly strangles the growth of your business
  4. 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

 

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