TLDR: In this blog post, the author discusses the complexity of banks and why they have multiple core banking systems. The structure of a bank, including its brands, stakeholders, customer experience, channels, business process, and products, can vary greatly and often result from the development of something new or the acquisition of another bank. The author argues that this complexity demonstrates why changing or replacing a single core banking solution does not solve all of a bank’s challenges. The article concludes by stating that moving to a new core banking system is neither a single project nor an easy task.
The author highlights the following key points:
- Banks have multiple core banking systems due to the complexity of their structure.
- Every bank has variations of the layers of banking, including brands, stakeholders, customer experience, channels, business process, and products.
- Autonomy within a bank’s structure often leads to separate management teams running their own core banking systems.
- Different customer segments within a bank, such as business banking, wealth management, and retail banking, may also require different core banking systems.
- Moving to a new core banking system is a complex and challenging task.
In conclusion, the author emphasizes the complexity of banking structures and the challenges banks face when considering replacing their core banking solutions.