How does a small bank approach its digital transformation as compared to a mid-tier or a large-tier bank?
A banking transformation approach is decided based upon the size of the bank, available capital for IT investment, the complexity of its operations and systems currently in place.
Large (Tier1) banks prefer to develop their own custom systems in-house, to meet their requirements. However substantial cost, resources and expertise required in building a new system, has forced many banks to acquire systems and customize them.
Medium sized banks (Tier 2,3) prefer to go for package-based solutions with some degree of customization. This strategy is appealing to small or medium sized banks which have low IT budgets and require low levels of customization.
Small-tier banks (Tier 4) prefer to go for cloud based solutions in order to pay per transaction basis.
Core Banking Transformation: measuring the value, Capgemini 2013
Core Banking System CSB2, is the optimal solution for those banks aiming to eliminate the need for multiple vendors, to reduce cost, time and complexity of the transformation project. CSB2 combines a high degree of customization with products-modules integrating key features.