Banks Continue to Switch Core Systems

If you believe that "One swallow doesn't make a summer," would you believe that 300 would? It's too early to tell about this new twist, but based on known activity this year, the pattern appears to be changing.For the past 35 years, banks have been converting to better core systems from weaker systems. As a result, the weaker vendors disappeared while eight companies make up the strong tier of core solutions providers (based on customer counts).

The new pattern shows that even though the top eight vendors achieved their top tier recognition based on excellence, some banks are coming to the conclusion that all good companies are not equal. So they are switching from one good company to an apparent better company within the top eight.

The true stats will tell a more accurate story in the 2009 Edition of Automation in Banking, but for now, the evidence so far shows signs of a pattern change.

The vendor landscape for core solutions now includes 29 companies. The Top 8 (determined by revenue), are Fiserv, Fidelity National Information Services, Metavante, Jack Henry & Associates, Inc., Open Solutions Inc., Harland Financial Solutions, Computer Services, Inc. and COCC. If the glimpse of a pattern change is completely accurate, then theoretically, 21 companies will retain their customers while the Top 8 will win some and lose some within their peer group.