Does the Future Hold a Place for Traditional Core Banking Systems (CBS)?
This week, I reconnected with a dear friend from the business world. We collaborated on Deutsche Bank's core banking transformation between 2007 and 2010—the "famous" EUR 1.5 billion Project Magellan. Back then, I served as Deutsche Bank's chief IT architect.
He inquired about my perspective on the future of traditional Core Banking Systems (CBS). This topic has come up in discussions with over a dozen CEOs and CIOs across Europe and MENA in the past two years.
Here's what I believe:
Traditional CBS face a challenging future. They'll either be stripped down to their core with minimal customization or replaced by fourth or fifth-generation CBS. These newer systems are real-time, AI-powered, and focused on essential functions like account and customer management. Other major functions, like credit and payments, will be handled by specialized, flexible vendor products using the latest software technology stacks.
My conclusion: CBS as we know it is nearing its end.
Published in SundayThoughts, CoreBanking, technology, banking, all on 13.07.2024 9:30 Uhr.
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