Intel Report Core Replacement - Flipbook - Page 12
The Core Landscape
For many regional banks that need to customize products beyond the basic services that the
legacy cores provide, their solutions may be limited. Regional and community banks often
rely on their core vendor to customize solutions that they want to add, since they don’t
often have the technological expertise in-house. But if the core provider takes significant
time to add features or limits their options, regional and community banks become frustrated, says Tom Grottke, managing director of financial services at the audit and consulting
firm Crowe LLP. For these situations, a newer set of core providers, offering variations from
full core services to alternative or complementary core solutions and cloud services, gives
regional banks more selection than ever before. These services, offered by companies such
as Finxact, Nymbus and Finastra, allow banks a chance to shop for multiple ways to shift
the core.
Those providers allow access to open architecture, which gives regional banks the ability to
add APIs or services without a significant hurdle of ensuring it can work with the core provider. These services also provide some or much of the core on the cloud, allowing the bank
to scale without significantly increasing costs. And they can use the core to build specific
systems, like new financial products or workflows that the old core didn’t allow. With these
customizations, they can automate services, use artificial intelligence (AI) and machine
learning in developing processes or servicing clients, and add special features that clients
seek.
Meanwhile, the legacy core providers have begun rolling out newer cores as well. FIS, for
example, has its Modern Banking Platform, which provides cloud-based core solutions. Jack
Henry & Associates and Fiserv both have solutions to make it easier for banks to connect
with third parties that aren’t included in the core contract.
10 | FINXTECH INTELLIGENCE REPORT
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