2014 McGladrey Financial Institutions Systems Survey offers findings on core systems

CHICAGO, April 1, 2014 /PRNewswire/ -- In today's complex financial and regulatory environment, banks must ensure that their core systems and processes are secure while meeting business needs to remain competitive. Technology systems must gather and analyze data, enable more efficient transactions, open doors for new products and services and discourage fraud. Core banking systems are the heart of your financial institutions, and they must fill not only current needs but also be scalable, depending on projected growth, regulatory changes and market trends.

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With increasing importance placed on core banking systems, McGladrey sought feedback from 133 banking executives across the United States. The Financial Institutions Systems Survey was designed to gain a better understanding of the solutions banks are implementing and their level of satisfaction with their current platforms. The survey also sought to identify trends in key industry issues, including technology outsourcing, disaster recovery, Internet banking and mobile banking.

Consolidation is a major trend for bank technology systems, as core vendors acquire ancillary products such as online and mobile banking platforms. These product extensions seek to increase system functionality and encourage customers to continue their relationships with their existing banks. Recent statistics also show an increase in outsourcing, as institutions try to control technology costs while increasing efficiency and focus on the core business.   

Core banking systems are a major investment, and banks must be careful during the selection process to ensure the right fit and future satisfaction. Changing core systems is not something to be taken lightly, and as vendors integrate new products, institutions are becoming more tied to their vendors' platforms. There must be a compelling reason to implement a new system and as banking solutions become more sophisticated, it will likely become even harder for banks to make a change.

As expected, our survey finds stability with core systems, as the majority of respondents have been on their systems for more than 10 years, and only 10 percent have changed platforms in the last three years. However, the survey finds some surprising results in relation to how satisfaction correlates to the length of time on a system and how happiness compares between in-house and outsourced systems.

The McGladrey Financial Institutions Systems Survey serves as a useful resource to help institutions better understand how their peers are using their core systems, and how to discover efficiencies and optimize platforms.

SOURCE McGladrey