Fiducitation - Core Banking Systems Replacement
Author: Ray Ferrara and Brian
O’Keeffe
Date: December 7, 2001 © 2001 Fiducite.com, Inc.
Fiducitation: A synthesis of
public Internet resources on the topic.
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This
Fiducitation has been prepared at the request of a client who is strongly
motivated to replace its older Burroughs (now Unisys) core banking
applications, and is considering Alnova’s Altamira as the leading candidate.
The purpose of this Fiducitation is twofold: first, to examine Altamira and
other leading core bank replacement options, and secondly, to discuss some of the
factors which the client should take into account negotiating, planning, and
implementing a core banking replacement.
Regarding
the selection of Altamira, it seems a reasonable choice, given what we have
been able to find out. It is a true real-time 7 X24 solution (and not a dressed
up memo-post one) that is essential for the on-line, multi-channel financial
environment we are entering. And it has a substantial, trained systems
integration presence – a necessity for effectively implementing these types of
systems. We have been involved firsthand in three core bank installation
projects in the US (Fiserv CBS, Hogan, and Sanchez) and have gained significant
recent exposure to incoming India-based solutions trying to crack the US market
(I-Flex, Polaris), so we know the market and issues in the US fairly well. And
while we do not have direct experience with Altamira – it does again seem like
a reasonable choice, given what we know to date. We presume that IDB has or
will talk to some existing Altamira reference accounts before well before
contract negotiations in order to better understand the key implementation
factors and limitations (and work-arounds) specific to Altamira. If for some
reason, the selection of Altamira does not work out as planned, we have included
a number of citations on other available core banking vendors in the citations
that follow.
We
have also included a section of this Fiducitation which discusses some of the
issues and risks involved in core bank replacement system projects. As we all
know these are very complex, long-term projects which cannot be taken lightly.
The basic wisdom that the authors have come to understand is that these
projects should be planned with a fairly lengthy period (3-6 months or more) of
parallel or “mirror” operation in place before the switchover and
decommissioning of the original system(s). Another factor which is often
underestimated is the degree of system integration required. Because any core
bank system replacement does not replaced ALL the systems in the bank, formal
planning must be done as to how to integrate the new core banking system(s)
with all the other IT or manual systems it touches. We have evolved several
techniques for dealing with this type of application and integration, typically
relying on message queuing solutions where rapid data propagation is
necessary, and data warehousing
solutions when data propagation time is not so critical. A final item we have
included in this section are some US federal guidelines of core system
replacement, including a high-level planning chart. Although this was prepared by a US and not an Israeli agency, its
basic concepts and guidelines seem to be universally applicable.
Synopsis:.............................................................................................................................. 1
Table of Contents:............................................................................................................... 2
Core Bank System Vendors – General
Information.......................................................... 3
Accenture – Alnova Altamira............................................................................................. 4
Fiserv................................................................................................................................... 4
IBM/Alltel............................................................................................................................ 5
Other Vendors..................................................................................................................... 5
Core Bank System Replacement
Projects – Issues and Risks.......................................... 6
Banking Technology Online: Core Values
Annotation: This has some rudimentary discussions of why banks choose
to upgrade legacy systems, but most importantly, towards the middle and end of
the document, the author discusses the benefits and features of some of the
main vendors’ systems. While it seems hesitant to lob any criticism at the
major vendors, it is a good independent evaluation of their strengths
Source: http://www.bankingtech.com/online/index.html
Cached File: 
2000 Retail Banking System Review:
Annotation: From International Banking Systems publishing, this is a
recap of all developments in the retail banking systems in 1999.
Source: http://www.banktech.com/story/internationalNews/BNK20010515S0008
Cached File: 
International Banking Systems 2000 Retail
Banking System Sales league Tables
Annotation: While this document contains more than just core banking
systems, it is good table addressing both new sales in 2000, and total
installed base.
Source: http://www.ibspublishing.com/sales_league_tables/rbs_league_table_2000.htm
Cached File: 
Annotation: From the same location, this is sales data for wholesale
banking back office systems.
Source: http://www.ibspublishing.com/sales_league_tables/league_table_2000.htm
Cached File: 
Accenture Creates Alnova, A Global Company
Specialized in Technological Solutions for the Financial Services Industry
Annotation: There is not very much publicly available web-based
information on Alnova and its Altamira products. We do know that the Alnova has
delivered core solutions in either an
“a la carte” best-of-breed way or as a comprehensive “Jetbank” solution in some
90 banks, mostly in Spain, Italy, Portugal,
and Latin America. It does claim to have one client in Israel. It is
truly a modern real-time solution, not
a memo-post one.
Source: http://www.accenture.com/xd/xd.asp?it=enweb&xd=_dyn/dynamicpressrelease_185.xml
Cached File:
This second citation
references Accenture indirectly, mentioning that “Only Accenture has succeeded
in winning a significant number of core systems migration deals, but even these
have been restricted to medium-sized banks”. It does indicate whether these
deals involved Altamira.
Source: http://www.datamonitor.com/~18da75d13fb14388ae3f5544846e374a~/all/news/single_comment.asp?pid=0DD87E89-D289-4E79-A719-0D957A048225&cat=CommentWire
Cached File:
Fiserv Products and Services
Annotation: Fiserv is a key player, for both core banking and other
solutions, as well as outsourcing. Its ICBS solution will scale to the needs of
fairly large banks, and be coupled with Fiserv’s CRM, Web, Insurance and other
solutions to meet the needs of comprehensive financial services firms. It’s
major competitor in the US, Marshall
& Isley, does not compete as well in the international arena.
Source: http://www.fiserv.com/
Alltel Marketing Brochures
Annotation: Alltel/Systematics is one of the premier high-end core
banking solution for large-scale US banks. Its solutions can be offered with
IBM systems integration assistance. These 2 brochures are Alltel’s sales
materials, detailing their offerings and capabilities.
Cached Files: 
BankTech.com article:
Annotation: This article form BankTech.com discusses an alliance
between IBM and Alltel to offer a core banking solution.
Source: http://www.banktech.com/story/internationalNews/BNK20010515S0008
Cached File:
Great Past, Great Present, Great Future
Annotation: This is a letter written by David Slider, President of
Alltel CoreBanking Solutions, and Managing Director of Alltel Europe-Middle
East-Africa. The letter highlights the history and evolution of core banking
systems.
Cached Files: 
IBM Back Office Solutions
Annotation: This report was prepared by Datamonitor, at IBM’s
request, on the subject of IBM’s back office banking capabilities.
Cached Files: 
Vendor
Lists
Annotation: This UK-based page contains vendor lists for all types of
banking hardware, software, and services, including a list for wholesale core
banking systems, and one for retail systems. There is a very small amount of
technical information for most vendors, and slightly more for the bigger
players.
Source: http://www.amarshall.com/resix/
Cached Files: 
Banking Technology Online: Core Values
Annotation: This has some rudimentary discussions of why banks choose
to upgrade legacy systems, but most importantly, towards the middle and end of
the document, the author discusses the benefits and features of some of the
main vendors’ systems. While it seems hesitant to lob ay criticism at the major
vendors, it is a good independent evaluation of their strengths
Source: http://www.bankingtech.com/online/index.html
Cached File: 
NextStep Case Study
Annotation: NextStep is an independent systems integrator. This is a
series of case briefs detailing projects that they conducted for a variety of
US Banks in and around in New York. The
cases focus mostly on merger integration issues, but they do discuss the
implementation process, and some of their rationale for choosing the systems
that they finally did.
Source: http://www.nextstepinternational.com/studies.htm
Cached Files: 
US Government Guidelines on Core Application
Replacement
Annotation: This citiation includes US
Federal guidelines of core system replacement, including a high-level planning
chart. Although this was prepared by a
US and not an Israeli agency, its basic concepts and guidelines seem to be
universally applicable.
Cached
Files: 
