New Wave To Replace Core Processing Systems
BOSTON -- Increasing numbers of credit unions and banks will replace their core processing systems over the next three years--an estimated 1,100 institutions--as existing systems become outdated, inefficient or costly to operate, according to a new study issued by IT consultants Aite Group. Credit unions especially will acquire new core systems in order to enhance their competitiveness and expand capacity to process new services, like business lending or mortgages, the Boston-based consultant reported. "In other cases, migrations (to new systems) are resulting from some vendors sunsetting products or not having a clear path," the study concluded. The study recommends that credit unions and banks should all be considering a core system replacement. "Technology is advancing quickly, and the capabilities and technical architecture of older solutions get out-dated quickly."