Misys announces momentum build in core banking
High-risk alternatives have driven upgrade decisions, says company
Misys Banking Systems is seeing significant global momentum in the growth of its core banking solutions business, it announced today.
More than 50 banks have elected to renovate existing systems using Misys' BankFusion suite, the company said. It believes banks are keen to adopt new regulatory measures at a faster pace, while "minimising risk exposure, reducing cost/income ratios and rebuilding capital structure".
Since BankFusion's launch in 2010, 54 banks including Co-operative Bank of Kenya, National Bank of Kenya and most recently Awash International Bank, have licensed BankFusion products and 17 have gone live.
"Changing a core system is a painful and difficult process," said Bart Narter, Research Director, Celent. "Ripping out and replacing a mission-critical core banking system is not only very costly, but it can dramatically increase risks. Banks have to find a way of extending the use of their existing systems and at the same time enhancing them. BankFusion is a viable option for them to succeed in that goal."
Bret Bolin, CEO of Misys, adds, "The risks associated with replacing a core banking system are considerable and the cost of failure is high. It is no surprise that banks' CEOs and CIOs will only reluctantly replace core banking systems.
"Our customers have taught us that we need to deliver solutions that support them whatever journey and pace of change they decide is right for them. The key is to ensure that together we enable them to follow a low-risk ‘continuous migration' approach to system renovation to continue to improve their businesses."