There are two common scenarios. Banks needing to simplify and modernize complex and aging infrastructure usually have opportunities to first standardize and integrate channel, product and database systems, and then to selectively modernize their core systems. Banks with platforms that cannot scale up or functionally support the business would tend to benefit from a more transformational approach.
An important factor is proper service provider management. A bank should insist that the vendor satisfy competitive business processes scripted by the bank. Reference checks can separate hype from reality in promised capabilities. And the bank should contractually obligate the vendor to provide ongoing visibility into its product road map and R&D investment.
Ongoing engagement from senior business leaders is a requirement, as is independent and experienced program oversight. Leveraging industry standards for business requirements, architecture and the development approach is critical for the implementation to go well and satisfy business needs.
But U.S. banks would benefit from the availability of additional solution options. While current options are adequate, vendor consolidation and the lack of domestic implementations from international providers constrain the competitiveness of the market. International providers, therefore, have an opportunity to break into the U.S. market through partnerships and acquisitions.