Core banking replacement is the single biggest project that banks undertake in terms of cost, time to execute and associated risks. Renewal/refresh/replacement of the core banking architectures is becoming unavoidable for a variety of reasons with the result that banks today are spending millions of dollars (in some cases 100s of millions of dollars) in trying to upgrade their core banking architectures. The question however remains – Is this large spend on the core banking architectures justifiable? Almost 75% of IT mega projects in banking (which of course includes core- banking projects) do not reach their goals, out of which 25% of them are totally unsuccessful and scrapped. Is it worth the risk and the time?
