Leading global research firm Everest Group has released its first in-depth “Leading” reports, one of which being its Leading 50™ Core Banking Technology Providers 2024 report, which is now available at Everest Group Leading 50™ – Everest Group

Core banking systems have long been the operational backbone of financial institutions, ensuring the smooth execution of banking activities. However, the traditional systems are reaching their limits, as customers now demand hyper-personalized, real-time banking experiences.

Imagine legacy core banking systems as aging engines in classic cars! While reliable for years, these engines struggle to meet the performance expectations of modern highways – where speed, efficiency, and adaptability are non-negotiable. To navigate this digital expressway, banks must replace or overhaul these engines with cloud-native, API-driven platforms designed for agility and scale.

Drivers of core banking modernization

The modernization of core banking systems is a strategic imperative now, and there are several forces driving this transformation:

  • Customer centricity: Modern platforms enable a 360-degree view of customers, facilitating real-time and hyper-personalized experiences
  • Operational agility: Cloud-native architectures support faster product launches and integrations with FinTech ecosystems
  • Cost optimization: By reducing reliance on capital-intensive legacy systems, banks can pivot to more flexible operational expenditure models
  • Regulatory compliance: Advanced systems provide built-in compliance features and enhanced security, mitigating risk in an increasingly complex regulatory environment

Legacy systems, though dependable, come with significant limitations: high costs, inflexibility, and an inability to deliver the seamless digital experiences customers expect. Modernization allows banks to respond to the rising volume of transactions, leverage open banking ecosystems to drive innovation, and enable real-time processing to meet modern consumer demands.

Everest Group Leading 50™ Core Banking Technology Providers 2024

The Leading 50™ Core Banking Technology Providers 2024 Report serves as a comprehensive guide for banks embarking on their modernization journey. This global ranking evaluates providers across multiple dimensions such as revenue and customer base, innovation and investment, client geography mix, and module coverage.

The report also includes recognitions for providers serving credit unions and regional leaders, while offering insights into the role of system integrators, hyperscalers, SaaS based delivery models, and collaborative ecosystems in driving modernization.

Ronak Doshi, partner at Everest Group, said: 

“The core banking technology market is undergoing significant transformation as banks face mounting pressure to modernize their legacy systems and cater to changing demand themes. Rising customer expectations for real-time experiences, intensifying regulatory scrutiny, and the need for operational agility are also all compelling financial institutions to accelerate their modernization initiatives at unprecedented speed and scale. 

“In response, technology providers are ramping up investments in SaaS-based delivery models, enhancing their platforms with artificial intelligence (AI) and advanced analytics capabilities, as well as strengthening their ecosystem play through strategic partnerships with hyperscalers and system integrators. As modernization initiatives continue to gain momentum, this research serves as an essential resource for banks undertaking modernization initiatives and technology providers seeking to benchmark their market position therefore.” 

Driving core banking modernization: Synergy of hyperscalers, SaaS, AI, and System Integrators (SIs)

The modernization of core banking systems is driven by the combined impact of hyperscalers, SaaS, AI, and System Integrators (SIs), each playing a pivotal role in transforming the financial services landscape.

Hyperscalers enable banks to leverage robust cloud infrastructure for scalability, resilience, and cost efficiency, forming the backbone of agile operations. SaaS platforms complement this by offering flexible delivery models that reduce upfront costs and accelerate the deployment of innovative solutions.

AI and advanced analytics embed intelligence into core systems, enhancing fraud detection, automating compliance, and enabling hyper-personalized experiences for customers.

Meanwhile, SIs act as orchestrators of this transformation, seamlessly integrating modular platforms, APIs, and ecosystem partnerships while managing complexities such as data migration and regulatory compliance. Together, these forces create a cohesive framework that empowers banks to modernize at speed, innovate continually, and remain competitive in an increasingly digital economy.

Implications for technology providers

The expectations from technology providers are shifting dramatically, with banks no longer seeking providers, but instead strategic partners who are capable of driving end-to-end transformation.

Providers must now prioritize delivering cloud-native, API-enabled solutions that facilitate real-time adaptability and scalability. These platforms allow for rapid product development and easy integration with the broader ecosystem of FinTech’s and third-party applications, ensuring that banks can innovate at speed. Providers who can offer modular solutions will stand out in this competitive landscape.

At the same time, embedding AI and automation into their core offerings is imperative. AI must be woven into the fabric of core systems, enabling automation for operational efficiencies and delivering insights from data analytics. Additionally, regional nuances and regulatory requirements demand tailored solutions, making providers’ ability to address local market needs a critical differentiator.

The road ahead: A collaborative future 

The journey to next-generation core banking is one of partnership and innovation. SaaS models enable agility, AI powers intelligence, and SIs bring the ecosystem together seamlessly. For technology providers, the path forward involves moving from transactional engagements to strategic partnerships, aligning deeply with banks’ modernization goals.

By embedding next-gen technologies and fostering collaboration, providers can redefine banking for the digital age—transforming challenges into opportunities and enabling financial institutions to thrive in a rapidly evolving market. The future of core banking is here, and it’s powered by innovation and strategic alignment.

To learn more about core banking, contact Ronak Doshi, [email protected], Pranati Dave, [email protected], Kriti Gupta, [email protected], and Laqshay Gupta, [email protected]. 

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