1、Rajesh M RBart NarterCore Banking Solutions for Large Banks A Global PerspectiveThis authorized reprint of a Celent report contains material excerpted from the Celent Core Banking Solutions for Large Banks- AGlobal Perspective report which contains 9 vendor profiles and is 57 pages long. This report
2、 was not sponsored by TCS in any way.This reprint was prepared specifically for TCS but the analysis presented has not been changed from that presented in the full report.For more information on the full report, please contact Celent at , or +1-617-262-3120.March 2010Content3 Executive Summary6 ABCD
3、 Analysis13 Vendors50 Tata Consultancy Services: TCS BaNCS56 Leveraging Celents Expertise56 Support for Financial Institutions56 Support for Vendors57 Related Celent ResearchCopyright 2010 Oliver Wyman 3Executive SummaryCore banking is the central processing unit of a bank. The banks, with the help
4、of software vendors, have found the opportunity to leverage Internet technology to handle transactions. Most of the paper-based transactions of yesteryear have been replaced by digital alternatives. Automation has brought a mantra of efficiency and increased produc-tivity. What had existed as a disp
5、arate group of branches is now a networked entity operating as a whole.The core banking market looks mature, with a significant percentage of banks having replaced their legacy systems with more efficient and flexible core banking systems. Currently, a very low number of large banks are looking to c
6、hange their core banking systems. This opportu-nity exists in banks that want to replace their legacy systems and in banks that look to consolidate core processing to a single vendor after a merger or acquisition.Some of the global trends among the large banks are: Preference for an SOA system. With
7、 the bank having multiple systems from different vendors, large banks typically go for a service-oriented architecture, with reusable services and seamless integration ability. Customer-centric, multichannel technologies. Banks prefer core banking solutions with multichannel options like ATM, mobile
8、, Internet, and IVR to attract and serve customers. Core banking solutions are also expected to facilitate product development and provide flexible customization capabilities. Reduced implementation time. Banks in developing coun-tries that are looking for replacing their core systems would prefer t
9、o centralize and replace their systems in a phased but efficient way so as not to interrupt current processes. For large banks with significantly high number of branches, a complete replacement with reduced implementation time would be a challenge for the vendors. Major preference for in-house imple
10、mentation. A majority of large banks in developing countries prefer in-house imple-mentations to hosted implementations. 4 Copyright 2010 Oliver WymanIn this report, Celent examines the solutions focused on the large banks around the world using Celents ABCD Vendor View. The vendors with the most ad
11、vanced technologies are TCS BNCS and SAP Transac-tional Banking. On the breadth of functionality dimension, Accentures Alnova Financial Solution and TCS BNCS scored over other solutions. SAP Transactional Banking, FIS Profile and FIS Systematics have the largest customer base, as estimated by weight
12、ed average asset size, among the solutions covered in this report. TCS BNCS and Infosys Finacle lead in depth of client services.Figure 1: Hogan System Has the Largest Percentage of Its Customers Above $100 billion Source: VendorsNote: The asset breakdowns of FLEXCUBE and TCS BNCS customers were not
13、 available.Customer Base by Asset Size0% 20% 40% 60% 80% 100%Accenture - AlnovaCSC - HoganInfosys - FinacleFIS - ProfileFIS - SystematicsPolaris - IntellectSAP Transactional Banking100bnCopyright 2010 Oliver Wyman 5This report contains a detailed analysis of vendor solutions with a summary on the st
14、rengths and weakness of each product. We analyse solutions catering to large banks around the world. This report is fifth in a series of vendor analysis of core banking solutions. The other reports are: Core Banking Solutions for Small BanksA North American Perspective, August 2009 Core Banking Solu
15、tions for Large and Midsize BanksA North American Perspective, September 2009 Core Banking Solutions for Small BanksA Global Perspective, October 2009 Core Banking Solutions for Midsize BanksA Global Perspective, December 2009Classification of Vendor SolutionsCelent has broken down the core banking
16、solutions based on the geo-graphical location of their customer bases and the size of the banks served.We have defined core banking solutions for large banks as those solu-tions whose weighted average asset size of customers is more than $20 billion. In this report, we cover solutions where more tha
17、n 10% of the banks are located in regions other than North America. Figure 2: Implementations Are Predominantly On-Premise Among Large BanksSource: VendorsASP vs On-premise0% 20% 40% 60% 80% 100%Accenture - AlnovaCSC - HoganInfosys - FinacleFIS - ProfileFIS - SystematicsPolaris - IntellectSAP Transa
18、ctional BankingTCS - BaNCSASP On-premiseCopyright 2010 Oliver Wyman 6ABCD AnalysisCelent has developed a framework for evaluating vendors called the Celent ABCD Vendor View. This is a standard representation of a ven-dor marketplace designed to show at a glance the relative positions of each vendor
19、in four categories: Advanced technology, Breadth of func-tionality, Customer base, and Depth of client services. The factors used to evaluate each vendor in this report are listed in Table 1Advanced Technology is based on the architecture of the system. Is the system written in an object-oriented la
20、nguage? Is a smart client used for the user interface? Can the system be ported to other operating sys-tems and databases easily? Celent gave high marks to vendors that have incorporated recent technological advancements in their solutions.The Breadth of Functionality dimension looks at the various
21、front end systems and other functionalities offered by the vendor. Celent gave highest marks to vendors that offered preintegrated features.Table 1: ABCD Analysis for Core Banking SolutionsCategory Factors IncludedAdvanced Technology ArchitectureHardware platformIntegration (messaging/middleware lay
22、er)User interfaceOperating systemsDatabasesBreadth of Functionality TellerSales platformInternetMobileATMCustomer data analytics / CRMCustomization capabilitiesLanguages supportedCurrency supportedCustomer Base Estimated total assets of banks using the systemDepth of Client Services Change managemen
23、tLevel of maintenance supportReleases and updatesSource: CelentCopyright 2010 Oliver Wyman 7Customer base was estimated based on the number of banks served as well as the breakdown of customer by assets. A vendor that has 20 banks with US$200 million in assets isnt as large as a vendor that has 20 b
24、anks with US$2 billion in assets. Celent estimated an average asset size for each asset bucket in the vendor questionnaire and estimated total assets of customers using the core system.Depth of client services measured the level of maintenance and post-implementation support offered by the vendor. C
25、elent gave high marks to vendors that offered change management, training support, and continual monitoring and updates.Note that different banks have different priorities, and the banks need to consider which dimensions are important in their environments. For example, if a bank wishes to implement
26、 the core banking solution without investing in modern platforms, it would typically choose a product having a low value in A. If the bank chose to implement a best-of-breed integration instead of a single vendor, B dimension can be discounted.As shown in Figure 3, Tata Consultancy Services BNCS and
27、 SAP Transactional Banking led in Advanced technology. Both the solutions are based on a multilayered architecture and designed to run in multi-ple platforms and with multiple databases. The solutions also use a smart client as the user interface to the core system. Figure 3: Celent ABCD Vendor View
28、Source: CelentCelent ABCD Vendor ComparisonTCS BaNCSAdvanced TechnologyBreadthofFunctionalityTop Quartile3rd Quartile2nd Quartile4th QuartileDepth of Client ServicesSize of bubble corresponds to estimated total assets of customers8 Copyright 2010 Oliver WymanTCS BNCS and Accentures Alnova solution r
29、anked high on Breadth of Functionality. TCS BNCS and Alnova offer diverse functionalities pre-integrated with the core. Alnova also provides option for customization using modifiable source codes. All the solutions have multilingual capabilities and support multiple currencies.SAP Transactional Bank
30、ing, Profile, and Systematics lead in customer base, having the highest estimated total assets of customers. TCS BNCS and Infosys Finacle provide good customer support with con-tinual monitoring, frequent updates, and change management programs.Banking FeaturesTable 2 on page 8 summarizes the differ
31、ent front end systems sup-ported by the core banking solution. In this segment, the banks would prefer not to invest in a wide range of channels and would be selecting based on their customer profile. Thus, while almost all the channels are supported by the core banking systems, they are offered as
32、optional modules.Table 3 on page 9, Table 4 on page 9, and Table 5 on page 10 summarize the consumer and commercial banking products supported by the core banking systems. Features such as small business administration, mortgages, lines of credit, compliance, transfers, and product manage-ment are o
33、ffered preintegrated with the core at no extra charge.Table 2: Channel Support: Alnova, Intellect, and Finacle Offer Channel Functionalities Preintegrated with the CoreAlnova Hogan Finacle Profile Systematics FLEXCUBE Intellect SAP BNCSTeller - o o Sales Platform- o o o -Internet Banking - o o oIVR
34、- o o oCall Center - - o - oATM - o o - Mobile - o o o - Source: VendorsKey: = offered with the core at no charge. o = offered as an optional module or preintegrated through a partner. - = not offered by the core banking system.Copyright 2010 Oliver Wyman 9.Table 3: Consumer Products: Mortgage Servi
35、cing Is A Popular Offering, While Other Features Are OptionalAlnova Hogan Finacle Profile Systematics FLEXCUBE Intellect SAP BNCSLoan origination- - - oMortgage Servic-ing Securities o - - - - - oMutual Funds o - o - - o - oTrust o - o - - - oWealthManagemento- - - o o -oSource: VendorsKey: = offere
36、d with the core at no charge. o = offered as an optional module or preintegrated through a partner. - = not offered by the core banking system.Table 4: Commercial Products: Systematics and TCS BNCS Provide Most of the Functionality with the CoreAlnova Hogan Finacle Profile Systematics FLEXCUBE Intel
37、lect SAP BNCSCash Management o oLeasing o - - - - Letters of Credit o - o - oLines of Credit o Loans (traditional bilateral) Loans (trade finance)o- o o oLoans (factoring)o- - - o - o oLoans(syndicated)- o -Loans (multicurrency) Remote Deposit Capture-oo o - o -Payroll - - o - Small Business Admin-i
38、stration (SBA) Lending- Source: VendorsKey: = offered with the core at no charge. o = offered as an optional module or preintegrated through a partner. - = not offered by the core banking system.10 Copyright 2010 Oliver WymanTable 5: Other FeaturesAlnova Hogan Finacle Profile Systematics FLEXCUBE In
39、tellect SAP BNCSAsset /Liability Man-agement (ALM)o- oo - o o ooBill Pay - - o o o - oCards o o o - oCheck Books - o o o Compliance: KYC, OFAC, Patriot Act-oo o CRM Analyticso oo o CRM Workflow- o o o CRM Marketing- o o o Data Warehouseo - o o o eStatements - o o o Fraud Detection-oo o o o ooImaging
40、/Com-puter Output to Laser Disk (COLD) storage-o- o o o ooPayments oProfitability o o o o Product Man-agement - o Risk Manage-ment-oo o o o oStop Payments Domestic Transfers Source: VendorsKey: = offered with the core at no charge. o = offered as an optional module or preintegrated through a partner
41、. - = not offered by the core banking system.Copyright 2010 Oliver Wyman 11Performance BenchmarksIn Table 6, Celent lists the vendor-provided performance benchmarking data. Table 6: Benchmarking DataCore Banking Solution BenchmarksAccenture: Alnova Live Data:At its largest customer in Latin America,
42、 Alnova processes 14 million clients at an average of 300 tps. The solution processes around 25 million operations at peak and around 8 million transactions on average per day. At its largest customer in Eastern Europe, Alnova processes 15 mil-lion clients at around 730 tps. CSC: Hogan System Lab Da
43、ta:CSC has benchmarked its architecture, customer information, and card system in an IBM data center with transaction processing of 1,500 TPS (98% completed in less than 200 milliseconds) using 100 million accounts.FIS: Profile Live Data:Profile has benchmarked with 3,200 online transactions per sec
44、ond and 28,500 batch transactions per second with a 50 million account database.FIS: Systematics Lab Data:Systematics was benchmarked in an environment for an end-of-quarter process execution of the FIS Systematics products, IMPACS (IM DDA), Savings Time (ST), and Advanced Lending System-Servic-ing
45、Manager (ALS-SM Lending). The batch processing mirrored a quarter-end batch processing schedule that allowed all postings to the account of record and the creation of all General Ledger entries.The accounts were processed at an average of 4,000 per second. Infosys: Finacle Lab Data: Completed online
46、 transaction (OLTP) mix with 7,790 business transactions per second Completed delivery channel transaction mix with business 19,288 transactions per secondThe processing was benchmarked with a simulation of 130,000 user load on a HP Itanium Montecito platform with an Oracle 10gr2 DOracle: FLEXCUBE L
47、ab Data:FLEXCUBE was benchmarked with a batch processing of 750 concur-rent users at the rate of 316 tps, 1,500 concurrent users at 627 tps and 3,000 concurrent users at 1,209 tps. The test was done on Real Application Cluster (RAC) database servers configured on HP Super-dome systems.Polaris: Intel
48、lect Live Data:The largest customer, Citibank India, processes 2.3 million accounts at an average of 6 million transactions per day.SAP Transactional Banking Lab Data:Benchmarked by IBM and showed capability to post at an average of 5,000 tps.Live Data:The largest customer, Deutsche Postbank, processes 26 million deposits accounts with an average of 10 millions transactions per day.Source: Vendors12 Copyright 2010 Oliver WymanThe following sections provide the reader with in-depth knowle
