December 17, 2010The Forrester Wave™: Global Banking Platforms, Q4 2010 by Jost Hoppermann for Application Development & Delivery Professionals Making Leaders Successful Every Day For Application Development & Delivery Professionals The Forrester Wave™: Global Banking Platforms, Q4 2010 Tata consultancy Services, infosys Technologies, And Temenos lead, With SAP, oracle, FiS, and Polaris Software lab Pursuing Fast by Jost Hoppermann with mike Gilpin, Ken vollmer, and Sander rose December 17, 2010 ExEcuT i v E S u m mA ry Forrester evaluated world-leading banking platform products across 80 criteria and found that Infosys Technologies, Tata Consultancy Services (TCS), and Temenos are in the Leader category. Infosys Finacle scores highly on multichannel enablement, platform agility, and implementation support; TCS BaNCS received high scores for banking platform functionality, deployment and operations, and both product and corporate strategy; and Temenos’ banking platform benefits from balanced overall performance with high scores in topics such as regulation. FIS’s, Oracle’s, Polaris’, and SAP’s banking platforms are all Strong Performers with balanced approaches and high individual scores. Although this evaluation identifies the outstanding providers in this field, all the products that Forrester evaluated offer value to firms in the banking industry. Each product has its individual strengths that will be of particular use depending on the environment and situation. TABl E o F co nTE nTS 2 After Dire Economic Times, Banks Again Focus On The Renewal Imperative if you need To Select A Banking Platform, you Have A Wealth of choices 3 Global Banking Platform Evaluation Overview Evaluation criteria Focus on Functional Breadth, Agility, And Strategy Forrester Selected vendors According To Scope, Global Success, And relevance 10 Evaluated Banking Platforms Offer Value To Many Transformation Initiatives 12 Vendor Profiles leaders: infosys Technologies, Tata consultancy Services, And Temenos Strong Performers: FiS, oracle, Polaris Software lab, And SAP 17 Supplemental Material n oT E S & rE S o u rcE S Forrester interviewed seven vendor and 21 user companies, including FiS, infosys Technologies, oracle, Polaris Software lab, SAP, Tata consultancy Services (TcS), and Temenos. Related Research Documents “Global Banking Platform Deals 2009” may 28, 2010 “The Banking Platform of The Future” December 8, 2009 “vintage Banking Platforms need renewal” December 2, 2004 © 2010, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester®, Technographics®, Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. To purchase reprints of this document, please email
[email protected]. For additional information, go to www.forrester.com. Q4 2010 For Application Development & Delivery Professionals AFTER DIRE ECONOMIC TIMES. 2010 © 2010. However.g. If You Need To Select A Banking Platform. currently executing 41% Planning. BANKS AGAIN FOCUS ON THE RENEWAL IMPERATIVE The recession slowed down or stalled all kinds of large-scale application development and delivery projects in numerous banks.1 Often. Forrester research. start in 2013 to 2014 8% Planning. many banks continued to prepare and plan to restart their prerecession renewal initiatives or even began new.2 The Forrester Wave™: Global Banking Platforms. support of new business capabilities. even during the recession. start in 2010 19% Base: 80 IT decision-makers within nancial services organizations (percentages do not total 100 because of rounding) Source: Q3 2010 Global Financial Services Architecture Online Survey 57213 Source: Forrester Research. for example. banks demand a forward-looking architecture and technology as a sound foundation for their transformation initiatives to deliver new banking platforms within the next few years. Figure 1 Global Financial Services Firms Are refocusing on Transforming The Apps landscape “When do you think your company will start a major renewal initiative regarding its financial services platform (e. December 17. reproduction Prohibited . these drivers also include multicountry implementations’ need to support consolidation of. banking platform)?” Already finished 1% No known plans 13% Planning.. Inc. You Have A Wealth Of Choices Application delivery teams responsible for their bank’s application landscape renewal need to identify banking platform solutions that cope with a growing flood of continuously changing business requirements around a nucleus of well-known drivers such as cost management. Forrester’s Q3 2010 Global Financial Services Architecture Online Survey shows that today the vast majority of financial services firms in general and banks in particular are either working on modernizing their application landscape or plan to do so within the next few years (see Figure 1). as well as improved customer experience. even broader transformation programs. the banking platforms of the international subsidiaries of a larger banking group. start in 2011 to 2012 19% Yes. inc. The global financial services architecture survey also showed that at the same time. short time-to-market and time-to-benefit. this Forrester Wave™ will provide guidance as to which vendors a delivery team or an executive should add to their shortlist. a variety of off-the-shelf banking platforms have proven their capability to satisfy the needs of multiple country-specific markets. customer relationship management. Agility. reproduction Prohibited December 17. it is not difficult to identity 30 or 40 candidate banking platform vendors. Application delivery teams and other roles renewing banking platforms should base their choices among these many options on the key global banking platform vendors’ architectural and functional capabilities and plans. inc. To assess product strength. SOA readiness. and support of additional channels with a strong focus on multichannel enablement. which we grouped into three high-level buckets: · Current offering. If an application delivery team also considers regional or country-specific players. the vendors’ road maps and strategies. Forrester evaluated the strengths and weaknesses of top banking platform vendors and their products. multichannel enablement. a more comprehensive view of the customer and business partners (customer/party-centricity). such as what functionality a © 2010. we developed a comprehensive set of evaluation criteria.4 Given the differing and often heterogeneous environments of banks. branch solutions.3 Banks can purchase and use many parts of a banking platform independently.2 Even vendors with a more regionally focused go-tomarket approach typically work with clients in multiple geographies. including core banking. Forrester measured the banking platform against criteria including its product configurator and its depth and breadth. and key global banking platform vendors delivered functionality to many countries over the past few years. and their overall market presence. user needs assessments. At a multiregional level. 2010 .The Forrester Wave™: Global Banking Platforms. including the given banking subvertical. We scrutinized the banking platform’s functional breadth from multiple perspectives.5 We evaluated vendors against 80 criteria. Forrester highly recommends that you customize this evaluation (using the Forrester Wave Excel-based vendor comparison tool) to fit your bank’s individual requirements and environment. Today the starting points for banking platform renewal initiatives most often include core banking. After examining past research. Forrester research. we do not position this evaluation to deliver final recommendations for bank executives or delivery teams in the off-theshelf banking platform selection process. and deployment and operations. we evaluated each offering against five groups of criteria: banking platform functionality. Evaluation Criteria Focus On Functional Breadth. GLOBAL BANKING PLATFORM EVALUATION OVERVIEW A banking platform contains an integrated set of most of a bank’s applications. And Strategy To assess the state of the banking platform market and see how the vendors stack up against each other. Q4 2010 For Application Development & Delivery Professionals 3 Today. the number of potential banking platform solutions grows higher still. rather. platform agility. and vendor and expert interviews. Oracle with Oracle FLEXCUBE and additional products from Oracle’s Financial Services Global Business Unit (FSGBU). this Forrester Wave can support decision-making processes for multiple banking subverticals. · Market presence. This does not mean that all vendors must or can offer exactly the same functional building blocks or the same functional depth in each area. and Temenos with T24 plus a few additional solutions (see Figure 2). We also took into account Forrester’s forward-looking vision on banking platform architecture as well as our research on how banking IT will look like in the future — albeit with slightly stronger focus than in the previous Forrester Wave evaluation of this space. and analytical enhancements. we used this to assess how well each vendor is positioned for future success. 2010 © 2010. Thus. Q4 2010 For Application Development & Delivery Professionals vendor delivered during the past 12 to 18 months as well as which financial services firms have licensed it for subverticals such as corporate. they want to see their business supported in the most cost-effective. research and development spending for the banking platform. including planned functional. services and support. reproduction Prohibited . SAP with SAP for Banking.6 Combined with our view of the development of the banking platform market. its overall architectural approach must support an agile banking platform. inc. and flexible way. in-house and/or partner implementation support. Polaris Software Lab with its Intellect Suite (Intellect). We compared the strategies of each company with industry trends and banking needs from the perspective of application delivery professionals and related roles selecting an offthe-shelf banking platform. Market presence is represented on the Forrester Wave graphic by the size of each vendor’s circle. TCS with TCS BaNCS. and business services ecosystems. For a solution to meet clients’ needs. reference accounts. Global Success.7 We also considered corporate strategy and cost. we combined information about the vendor’s installed base. Banks need to limit the impact of changing business needs — including a changing economic environment or changing customer behavior — on their applications and application infrastructure. architectural. Infosys Technologies with Finacle. and private banking.4 The Forrester Wave™: Global Banking Platforms. TouchPoint. December 17. · Strategy. efficient. and Xpress. Business executives do not demand new banking platforms. Forrester research. We examined vendors’ product strategy. supplementary functionality. Application delivery teams need to ensure that the off-the-shelf banking platform they select can cope with these requirements. and revenue as well as revenue growth. 8 · Agile target state architecture. All vendors in this evaluation can support a substantial proportion of the functional building blocks defined in Forrester’s functional map for banking. Forrester Selected Vendors According To Scope. Each of these vendors broadly met all of the following qualification criteria: · Functional coverage of a large part of the functional map for banking. And Relevance Forrester included seven vendors and their products in the assessment: FIS with a combination of Profile. To establish a product’s market presence. number of employees. retail. which — in conjunction with the 2009 survey — provided the data for the “success” criterion.The Forrester Wave™: Global Banking Platforms. Forrester adjusted the “success criterion” for the 2010 Forrester Wave to express stable global success. Even with these somewhat relaxed selection criteria. · Global delivery capability. Indian Nucleus Software Exports as well as French Delta Informatique both were up to the “success” criterion but fell short of the threshold for the number of regions with a signed contract. This qualification criterion ensures that vendors participated in this evaluation with both a competitive current offering and the ability to deliver across the globe. South America. Europe. Forrester invited Misys to participate in this Forrester Wave. Included vendors are frequently mentioned in Forrester client inquiries and other forms of client interaction. inc. but the company was not in a position to contribute within the evaluation’s defined timeline. · Mindshare among the Forrester client base. Central America including the Caribbean. reproduction Prohibited December 17. While the vendors did not necessarily deliver all of the projects in 2008 and 2009. respectively. the number of vendors that came close to qualifying for the global banking platform Forrester Wave was not large. On the other hand of the spectrum.9 ERI Bancaire might have made it into the comparison if the firm had participated in the 2008 global banking platform deals survey. the Middle East. The 2009 banking platform market showed severely reduced activity. To take care of this situation. Forrester research. © 2010. Vendors had to deliver these projects in at least four of the seven regions of the world in 2009: North America. Africa. Q4 2010 For Application Development & Delivery Professionals 5 · Sound success in 2008 and 2009. and Asia Pacific. All participating vendors either won more than 15 banking platform deals in 2009 or at least five deals in 2008 and in 2009. each vendor at least closed the required number of deals. 2010 . 3 1. reproduction Prohibited . 2009 July 2009 July 2009 Sept. 2010 Jan.3.3 7. Q4 2010 For Application Development & Delivery Professionals Figure 2 Evaluated vendors: vendor information And Selection criteria FIS Profile Profile Customer Profile Deposits Profile Lending Profile Product Factory Profile Choice Profile WebCSR Profile Real Time Account Opening and Funding Profile WebClient Profile Teller Profile Real Time Reporting TouchPoint Sales and Service (which includes the Sales. 2010 Jan.4 7. and Cross-Sell Manager modules) TouchPoint Teller TouchPoint ATM TouchPoint Business Intelligence FIS’s Xpress Integration Solution Suite Infosys Technologies Finacle core banking solution Finacle CRM solution Finacle e-banking solution Finacle treasury solution Finacle wealth management solution Finacle Islamic banking solution Finacle direct banking solution Finacle mobile banking solution Finacle Core Banking Solution for Regional Rural Banks Finacle inclusion solution Finacle analyz Finacle alerts solution Finacle customer eXPerience solution Finacle advizor Finacle lite Finacle nanz tools Finacle WatchWiz Finacle mobile bank-in-a-box* Finacle m-commerce solution* Finacle operational data store* Finacle treasury-in-a-box* 57213 Version 7.3 7. 2010 Jan.3 10.3. December 17. 2010 July 2010 July 2010 Aug. 2009 Jan.0 14.3.6 The Forrester Wave™: Global Banking Platforms.3.0 10. 2010 Jan.0 14. 2010 Jan.3 10. 2010 Jan.0 1.3 7. Service.0 14.0 1.3 14.3.3 Jan.3 10. 2010 Jan. 2010 Jan.3 7.3 10. 2009 June 2010 10. 2010 Jan.3 7.3 10.3 1. 2010 Source: Forrester Research.0 1. 2009 Jan.3 7.2 10. 2010 June 2009 June 2010 Jan.3.3.3. 2010 Jan. Account Opening.0 14.3 10. 2010 Jan.8 10.0 1. 2010 Aug.3 7.0 10.3. Forrester research.3. inc. Marketer. 2010 © 2010.3 7.0 General availability date July 2010 July 2010 July 2010 July 2010 July 2010 July 2010 July 2010 Dec.3 7. Inc. 2 4. 2010 July 2010 July 2010 Oct. 2009 † † 2007-2009 † † † † † † † 10. 2010 .1 7.8. 2010 Mar. inc.0 11.6 10.1 May 2010 May 2010 Mar. © 2010. Forrester research.8 10. Inc.0 10.0 9.4 4.8 10.2 5. and investment banking avors) Intellect Cards Intellect Wealth Intellect Payment Services Hub Intellect Liquidity Intellect Business Process Studio Intellect Collections* Intellect Receivables* Intellect Custody* 57213 Version 11. Q4 2010 For Application Development & Delivery Professionals 7 Figure 2 Evaluated vendors: vendor information And Selection criteria (cont. 2009 May 2010 July 2009 May 2010 May 2010 July 2010 Jan. 2009 Source: Forrester Research.5 10.0 10.0 9. 2009 Mar.2 General availability date Aug. 2010 Dec.0 10.1 5. 2010 Mar. 2010 May 2010 June 2010 Feb.) Oracle Oracle FLEXCUBE Universal Banking Oracle FLEXCUBE Direct Banking Oracle FLEXCUBE Core Banking Oracle FLEXCUBE Online Trading Oracle FLEXCUBE Private Banking Oracle FLEXCUBE Investor Servicing Oracle Reveleus Oracle Mantas Oracle Industry Reference Model for Banking Oracle Imaging and Process Manager Oracle Adaptive Access Manager Oracle Financial Services Analytical Applications Oracle Business Intelligence Suite Enterprise Edition Oracle BPEL Process Manager Oracle Business Process Architect Oracle Business Activity Monitoring Oracle Access Manager Oracle Siebel Branch Sales and Service Oracle Siebel Branch Teller Polaris Intellect Core Intellect Payments Intellect Origination Intellect Lending Intellect Collect Intellect Trade Intellect Treasury Intellect Portal (in its corporate.1 2. reproduction Prohibited December 17.3 10.1 3.2 8.1 9.The Forrester Wave™: Global Banking Platforms.2 † † Various † † † † † 8. 2010 Sept. 2010 Mar. retail.8 10. EHP 4 CRM 7. Suite Edition (AKA BCA) SAP Loans Management.0 Banking Services 7.0 7.EHP 4 General availability date Q2 2009 Q2 2010 Q2 2009 Q2 2009 Q4 2009 Q4 2009 Q4 2009 Q4 2009 Q4 2009 Q4 2009 Q4 2009 Q4 2009 Q4 2009 Q2 2009 Q1 2008 Q2 2010 Q4 2009 2008 Q2 2009 Source: Forrester Research. Inc.0 Banking Services 7. Q4 2010 For Application Development & Delivery Professionals Figure 2 Evaluated vendors: vendor information And Selection criteria (cont. and compliance (GRC) solutions SAP Treasury and Risk Management 57213 Version ERP 6.0 CRM 2007 7.0 ERP 6.0 Banking Services 7. December 17.0 . Suite Edition (AKA CML) SAP Deposits Management SAP Loans Management SAP Collateral Management SAP Bank Analyzer SAP Financial Customer Information Management SAP Limit Management for Banking SAP Basel II SAP Accounting for Financial Instruments SAP Profitability Management SAP BusinessObjects Planning and Consolidation SAP Leasing SAP Payment Engine SAP Price Optimization for Banking SAP BusinessObjects governance.0 Banking Services 7.EHP 4 Banking Services 7. reproduction Prohibited .0 Banking Services 7.0 Banking Services 7.0 2.0 Banking Services 7. Forrester research.0 . 2010 © 2010. inc.EHP 4 ERP 6.0 .8 The Forrester Wave™: Global Banking Platforms.) SAP SAP ERP SAP CRM SAP Deposits Management.0 .0 Banking Services 7. risk.0 ERP 6.0 4. 2010 Sept. 2010 Sept. 2010 Sept. 2010 Sept. 2010 TCS TCS BαNCS Core Banking TCS BαNCS Channels TCS BαNCS Trade Finance TCS BαNCS Wealth Management TCS BαNCS Origination TCS BαNCS CRM. 2010 Sept. 2010 Sept. 2010 Sept. 2010 Sept.2 R10 R10 † † 1 Mar. 2010 Sept. 2010 Sept. Inc. 2010 Sept. Contact and Lead Management TCS BαNCS Compliance TCS BαNCS Payments TCS BαNCS Cash Management TCS BαNCS Treasury TCS BαNCS Cards TCS BαNCS Corporate Actions TCS BαNCS Securities Processing TCS BαNCS Securities Trading TCS BαNCS Asset Liability Management TCS BαNCS Islamic Banking TCS BαNCS Financial Inclusion TCS BαNCS Service Integrator TCS BαNCS Lending and Borrowing TCS BαNCS Insurance TCS BαNCS Insurance — Property and Casualty TCS BαNCS Insurance — Individual Life/Group Life TCS BαNCS Insurance — Workers Compensation TCS BαNCS Insurance — Product Workbench TCS BαNCS Insurance — Agent Workbench TCS BαNCS Insurance — Reinsurance TCS BαNCS Market Infrastructure Temenos TEMENOS T24 TEMENOS Insight TEMENOS Financial Reporting (TFR) TEMENOS AML TEMENOS Treasury Trader‡ 57213 Version 11 11 11 6 11 6 6 6 6 5 11 6 6 6 11 11 11 6 6 7 7 7 7 7 7 7 4. 2010 Sept. © 2010. 2010 Sept.The Forrester Wave™: Global Banking Platforms. Sales. 2010 Sept. 2010 Sept. 2010 Sept. 2010 Sept. reproduction Prohibited December 17. 2010 Sept.) General availability date Sept. 2010 Mar. Q4 2010 For Application Development & Delivery Professionals 9 Figure 2 Evaluated vendors: vendor information And Selection criteria (cont. 2011 Source: Forrester Research. 2010 Sept. Forrester research. 2010 Sept. inc. 2010 † † Jan. 2010 Sept. 2010 Sept. 2010 Sept. 2010 Sept. 2010 Sept. 2010 Sept. 2010 . TCS with TCS BaNCS is again a Leader.) Vendor selection criteria The banking platform covers a large part of Forrester’s functional map for banking. GA date. Infosys with Finacle became a Leader this year with the highest marks in multiple areas such as multichannel enablement. † 57213 Source: Forrester Research. After its convincing first-time performance in the last global banking platform Forrester Wave evaluation. Temenos has since 2007. The vendor has seen sound banking platform success. application architecture. Inc. Both banking platforms consist of 19 modules that gain these vendors and their banking platform offerings Strong Performer status. TCS BaNCS and its 27 modules scores highest in a number of criteria. all seven participating vendors and their banking platforms show sound to very strong solutions in many of the compared topic areas. as it was not yet GA. ‡ Treasury Trader was not considered. Both vendors offer banking platforms — with 17 and 5 modules being part of this Wave evaluation. · Infosys Technologies and Temenos are the old hands among the Leaders. or both. *This product was not subject to the Forrester Wave evaluation. respectively — with broad functionality and strong multichannel capabilities. Temenos with T24 excelled with the highest marks for support of regulatory requirements and business metadata/parameterization as well as selected product strategy topics such as the process composer and business services ecosystems. Oracle delivers balanced overall performance. December 17. The vendor has shown proven global delivery capability. Q4 2010 For Application Development & Delivery Professionals Figure 2 Evaluated vendors: vendor information And Selection criteria (cont. Forrester clients frequently mentioned or inquired about the vendor. it is an accomplishment just to participate. and flexibility. including delivered functionality and supported subverticals as well as product strategy. The vendor did not disclose version. In fact. the solutions often show little separation regarding a variety of criteria. with strong scores in areas such as business functionality. 2010 © 2010. · SAP and Oracle are Strong Performers. The evaluation uncovered a top group of global banking platform vendors in which (see Figure 3): · TCS defended its position as a Leader. Infosys has placed among the Leaders since 2006. inc. reproduction Prohibited . Forrester research. EVALUATED BANKING PLATFORMS OFFER VALUE TO MANY TRANSFORMATION INITIATIVES Given the stringent selection criteria for this Forrester Wave. The vendor has forward-looking architectural plans.10 The Forrester Wave™: Global Banking Platforms. Despite using stronger criteria — compared with the previous Forrester Wave evaluation of this space — in a number of cases to highlight differences for improved banking platform offerings. reproduction Prohibited December 17. process execution. feature comparisons. Q4 ’10 Risky Bets Strong Tata Consultancy Services Infosys Technologies Temenos SAP Contenders Strong Performers Leaders Go online to download the Forrester Wave tool for more detailed product evaluations. © 2010.10 Figure 3 Forrester Wave™: Global Banking Platforms. and Xpress product lines — and Polaris with its Intellect Suite each came out of the comparison showing a balanced performance. Q4 2010 For Application Development & Delivery Professionals 11 the depth of the product configurator. Forrester research. and document management integration. SAP with SAP for Banking scores highest in areas such as process modeling and supplementary functionality and also shows strong capabilities in areas such as deployment and operations as well as product strategy. and customizable rankings. TouchPoint.The Forrester Wave™: Global Banking Platforms. Inc. Polaris Intellect and its 13 evaluated modules gain strong scores in areas such as SOA readiness. its cross-channel capabilities. support of regulation. as well as planned analytical extensions. 2010 . FIS with its banking platform —consisting of the Profile. multichannel enablement. Oracle Current o ering Polaris Software Lab FIS Market presence Weak Weak Strategy Strong Source: Forrester Research. · FIS and Polaris Software Lab emerge as Strong Performers with good first-time performances. FIS’s banking platform — with a total of 10 modules — shows strong results in areas such as the depth of its product configurator. inc. as well as its plans for an advanced product composer. 85 3.78 2. VENDOR PROFILES Leaders: Infosys Technologies.60 3.50 2. inc.54 3. TCS BaNCS again wins a Leader position with high scores on deployment and operations as well as business functionality. December 17.00 4.80 3.00 4.00 3. process execution.00 2.83 4.00 4. The banking platform also received high scores on supported subverticals: Its functional breadth enabled it to deliver to all analyzed subverticals.55 3.91 2.57 3.35 2.00 0.00 2.20 3.30 3.70 4.19 3.00 0.00 4.23 2.90 4.60 3.48 3.50 3.00 3.12 The Forrester Wave™: Global Banking Platforms. Product configurator and multichannel enablement are strong.00 3.94 3. Q4 2010 For Application Development & Delivery Professionals Figure 3 Forrester Wave™: Global Banking Platforms. The banking platform also earns a strong score on platform agility.50 1. and party-centricity.50 2.45 4.00 4.60 1.00 1.00 2.50 4.00 2.20 2.50 2. Forrester research.50 2.10 2.70 2.09 4.15 4.00 3.04 2. Tata Consultancy Services.50 5.54 3.10 5.50 3.42 3.01 3.83 2.60 4.00 1.00 3.00 2.00 4.50 2.00 2.00 0.00 2.40 4.00 3.60 1.00 5.) Tata Consultancy Services 4. 2010 © 2010.88 4.00 0.50 3.00 4.64 3.00 4.24 2. And Temenos · TCS and TCS BaNCS show very broad functionality and very strong strategy.20 3.25 5.08 4.40 3.30 2.40 2.50 4. Inc.46 4.00 0.00 4. providing cross-channel support for a broad set of channels.20 3.00 4.50 0.10 2.20 2.20 2.74 3.36 3.89 3.00 1.65 5.00 2.40 2.00 3. Source: Forrester Research. leveraging very strong application architecture for building blocks such as functional composition.30 4.00 3.92 3.00 2.00 4.60 All scores are based on a scale of 0 (weak) to 5 (strong).00 2.80 Infosys Technologies Polaris Software Lab Forrester’s Weighting CURRENT OFFERING Banking platform functionality SOA readiness Multichannel enablement Platform agility Deployment and operations STRATEGY Product strategy Corporate strategy Cost MARKET PRESENCE Installed base Reference accounts Supplementary functionality Implementation support Services and support Employees Revenue and revenue growth 50% 25% 5% 10% 40% 20% 50% 65% 35% 0% 0% 25% 20% 5% 10% 25% 5% 10% 2. reproduction Prohibited Temenos Oracle SAP FIS .50 4.00 3.33 4.00 2.70 5.82 3. After its debut in the last Forrester Wave evaluation of global banking platforms.50 0.00 4.51 4.00 3.60 3.00 4. Q4 ’10 (cont. with no real functional gaps.00 0.64 3.00 0.00 3.00 0. inc. which also reflects large research and development investments. as well as multicountry factoring. online brokerage. Its banking functionality is strong. Finacle is in a sound position with a strong corporate strategy. Strong plans for analytics extensions and architecture enhancements complete the product strategy. although its plans for analytics extensions are not as comprehensive as those of other banking platforms in this evaluation. or high business functionality scores — unless you need international third-party implementation partners with large. Consider TCS BaNCS for your vendor shortlist if you need strong platform agility. however. banking platform delivery as software-as-a-service. where it scores the highest. 2010 . broad supplementary functionality. The © 2010. Temenos earns highest marks on support for regulatory requirements and business metadata/parameterization. · Temenos and T24 provide a balanced banking platform solution. service provisioning. Finacle’s market presence is very sound. but because other vendors have caught up and accelerated beyond Infosys’ plans for Finacle. which shows a number of strengths and no weaknesses. pretrained consulting groups. Finacle has exhibited strong architecture for a couple of years. This is due in part to broad supplementary functionality from third parties as well as a very strong services and support offering. or Infosys’ lack of visibility in a particular local market push Finacle off the list. reproduction Prohibited December 17. Finacle earns high scores for its flexibility — in particular due to Finacle’s “bank-friendly” customization approach — as well as for its application architecture. TCS BaNCS’s market presence is strong based on a sound installed base and very strong service and support capabilities. very strong multichannel enablement. It shows no wide functional or architectural gaps and again earns Leader status. and party-centricity. focusing on strong functionality such as “Ready Bank” solutions for specific markets such as Australia and the US.12 Banks should include Finacle in vendor shortlists if they need strong platform agility. Temenos’ banking platform consists of T24 and a few additional solutions. it suffers from the fact that Temenos delivered only a portion of its overall functional portfolio to clients during the six quarters prior to the start of the Forrester Wave process. In this Forrester Wave evaluation.11 Finacle supports a broad set of channels and also offers remote advisory capabilities supporting interactions between remote bank advisors and customers using multiple channels concurrently. However. process execution. The result? Finacle no longer has any area where its product strategy is miles ahead of the competition. Infosys’ Leader position builds on strong banking platform functionality as well as strength in multichannel enablement and platform agility. Particularly strong areas of the architecture include functional composition. Forrester research. TCS earns the highest marks for product strategy. or broad functionality — unless requirements for trading platforms. Finacle has lost the position it held in previous Forrester Wave evaluations as the highest scorer for product strategy.The Forrester Wave™: Global Banking Platforms. it has a very sound installed base as well as strong service and support capabilities. but it also has no truly weak spots. Q4 2010 For Application Development & Delivery Professionals 13 Of all the evaluated vendors. · Infosys and Finacle offer strong application architecture and broad functionality. not due to Infosys’ inactivity. Its current offering is very sound. competitors have caught up in this regard. Oracle Mantas. Polaris Software Lab. and business metadata/parameterization. Most detailed aspects of its product strategy are sound: SAP’s planned analytics extensions are second to none. brokerage. SAP’s service and maintenance guarantee is strong. Consider Temenos for your vendor shortlist if you need a banking platform with broad functionality. However. The product strategy score reflects sound plans for functional enhancements and analytical extensions as well as strong plans for architectural enhancements. direct support of partners such as brokers and agents. Life scalability remains one of T24’s weaker spots. Temenos received a strong score for overall strategy. however. Full integration of Sybase Financial Fusion is not yet on the communicated road map. high scores in process modeling and service repository.”13 However. and strong service and support capabilities — unless your requirements for capabilities such as extreme scalability push it off the list. In cases with broad functional requirements. which became available in March 2010. Business functionality is only sound due to a functional focus that does not include. Temenos is in the top group for service and maintenance guarantees and is second to none in its plans to support the business services ecosystem. 2010 © 2010. examining SAP’s functional fit — with or without partner solutions — with regard to a bank’s functional requirements is essential. Multichannel enablement is still not a strong point of SAP for Banking.14 The Forrester Wave™: Global Banking Platforms. Its market presence score is on the low side for a firm that is an established “Global Power Seller. party-centricity. Strong Performers: FIS. Temenos emerged from the evaluation with a corporate strategy score second only to TCS BaNCS’s score. strong platform agility. · Oracle with its banking platform is a Strong Performer. this is primarily due to the score for installed base. Banks with an existing SAP environment should consider SAP for Banking for their vendor shortlist. SAP for Banking is again a Strong Performer. and Oracle Siebel Branch Sales December 17. loan syndication. for example. Leveraging its position as a banking platform pure play vendor. fraud detection. reproduction Prohibited . Oracle defined a banking platform comprising Oracle FLEXCUBE and several products from the FSGBU including Oracle Reveleus. or trading platforms. Q4 2010 For Application Development & Delivery Professionals banking platform provides cross-channel support for a broad set of channels as well as a very agile platform. Its market presence is sound but not strong — driven by weak implementation support scores due to nondisclosed information. And SAP · SAP and SAP for Banking provide sound overall functionality around a strong strategy. inc. while its product strategy is only very sound on the verge of being strong. with strong application architecture. Oracle Financial Services Analytical Applications. Forrester research. the 10 million accounts cited in the last Forrester Wave as the limit of proven scalability increased to about 14 million accounts today — which should be sufficient for most potential T24 customers. and its plans regarding business services ecosystems are second only to Temenos’. SAP’s corporate strategy is strong. and strong scores for process execution. as the banking platform does not come with an out-of-the-box multichannel solution. reflecting a low number of customers on the recent version of T24. Oracle. with a high number of clients on the current software version and on maintenance. Oracle’s market presence is sound. FIS’s market presence is consistent with having recently risen to the rank of Global Challenger. FIS’s research and development spending is on the low side compared with other players in this Forrester Wave. Oracle made no visible commitment to business services ecosystems or to semantic specifications of business services interfaces for the banking industry. The banking platform has strong business functionality that is more pre-integrated than it was in the previous Forrester Wave. However. The banking platform’s business functionality is sound. Banks can complement business functionality from FIS’s supplementary product portfolio. However. Oracle’s overall strategy is sound: It has sound plans for architectural enhancements. with no weak points in the banking platform. © 2010. The current offering for this banking platform received a sound score. and Profile provides strong support for business metadata/parameterization and overall flexibility. architecture defined around a process. The product strategy score reflects strong service and maintenance guarantees. providing cross-channel support for a broad set of channels. because Oracle responded to many Forrester Wave questions for elements of the defined banking platform but not the entire banking platform. · FIS’ first-time appearance makes the banking platform a Strong Performer. and a very strong service and maintenance guarantee. which is outside of the scope of this evaluation. and Xpress. with a strong product configurator that earned high scores on the depth of its capabilities. and FIS’s plans to extend the analytical capabilities of its banking platform and its product configurator (verging on a product composer as an element of a future banking platform) are second to none. and a strong service and support offering. inc. but this does not reflect Oracle’s position as a Global Power Seller for the years 2006 to 2009. Q4 2010 For Application Development & Delivery Professionals 15 and Service and Branch Teller. reproduction Prohibited December 17.The Forrester Wave™: Global Banking Platforms. scores in some other areas of Oracle’s platform — such as the installed base of the current version of the banking platform or its implementation support — might have been higher had it disclosed more information. second only to one other evaluated vendor. FIS defined its banking platform as comprising Profile. Platform agility is sound. 2010 . strong plans for analytical extensions that are second to none. FIS has sound product and corporate strategy. Regulation is another strong point. and its product configurator scored the highest for breadth in this evaluation. process execution. Forrester research. TouchPoint offers strong crosschannel capability. The “process and integration” infrastructure Xpress exhibits strengths in process execution and service provisioning. FIS’s single weak point is its service repository due to undisclosed information and underlying tooling that was not designed to be used as a service repository. TouchPoint. and sound business functionality that FIS products from outside of the banking platform can supplement. very positive client feedback. The solution offers strong multichannel enablement. Process execution and business metadata/parameterization were both strong. an integration-oriented banking backbone. Consider FIS’s banking platform for your vendor shortlist if your requirements prioritize capabilities such as product configuration. Consider Oracle’s banking platform for your vendor shortlists unless your bank requires a more homogeneous product portfolio or a less-Oracle-oriented application infrastructure. 2010 © 2010. for example. product composer. for example. Forrester research. for example. These scores reflect the vendor’s limited disclosure of details regarding existing product strategy. while deployment options received a low score due to a small multicountry/ multi-instance footprint as well as nondisclosed information. Q4 2010 For Application Development & Delivery Professionals · Polaris’ Intellect delivers sound business functionality via balanced platform capabilities. Polaris’ Intellect debuts in this Forrester Wave evaluation of global banking platforms as a Strong Performer. inc. Banking platform functionality is sound with two gaps: Some functional modules were not yet delivered to clients during the six quarters prior to the start of the Forrester Wave process. gives a certain weighting to multichannel enablement as well as general availability of hosting options — even though not all clients would need this — as well as high weights to. This evaluation. with planned functional enhancements earning the highest score within Polaris’ product strategy scores. to enable a step-by-step-transformation approach. While SOA readiness is not an issue with any of the compared platforms. In addition. or to supplement existing service-oriented app landscapes or if you simply desire a banking platform without deep functional and nonfunctional holes. planned analytical extensions. for example. Considering the complexity of a bank’s typical business and IT environment. and the weights assigned to the criteria are general ones. December 17. Process execution and document management integration. Other scores related to. Consider Polaris for your vendor shortlist if you are seeking banking platform components as a basis for custom-built applications. and 2) to discuss the findings of this Forrester Wave evaluation of global banking platforms for their individual environment with Forrester. and the breadth of product configuration capabilities received a low score due to nondisclosed information. this evaluation of global banking platforms is intended to be only a starting point. Readers are therefore encouraged: 1) to view detailed product evaluations and adapt the criteria weighting to fit their individual needs through the Forrester Wave Excel-based vendor comparison tool.16 The Forrester Wave™: Global Banking Platforms. Intellect’s scores show cross-channel support for a broad range of channels as well as a sound degree of platform agility. It is based on Forrester’s assessment of the vendors’ products. Market presence was rated sound and would have been higher except that the vendor identified very few partners offering supplementary functionality and disclosed little information about new customers and implementation support. Polaris’ corporate strategy received a strong score because of Polaris’ clear focus on the banking platform business. and business services ecosystems are just sound. are strong. Product strategy is just sound. scalability and deployment options. reproduction Prohibited . Intellect offers one of the two highest levels of SOA readiness. and 3) Forrester client demand. · Executive strategy calls. strategy. and readers are encouraged to adapt the weightings to fit their individual needs through the Excel-based tool. We eliminate vendors that have limited customer references and products that don’t fit the scope of our evaluation. Forrester research. and vendor and expert interviews. we develop the initial evaluation criteria. Q4 2010 For Application Development & Delivery Professionals 17 SUPPLEMENTAL MATERIAL Online Resource The online version of Figure 3 is an Excel-based vendor comparison tool that provides detailed product evaluations and customizable rankings. To evaluate the vendors and their products against our set of criteria. After examining past research. and we adjust the evaluations to provide the most accurate view of vendor offerings and strategies. and after going live. The Forrester Wave Methodology We conduct primary research to develop a list of vendors that meet our criteria to be evaluated in this market. and product strategy as well as road maps and key differentiators. discussing topics such as go-to-market. © 2010. their experiences with the banking platform during. before. Forrester also conducted reference calls: For each vendor. Forrester surveyed vendors on their capabilities as they relate to the evaluation criteria. we conducted vendor calls where necessary to gather details of vendor qualifications. reproduction Prohibited December 17. 2010 . we interviewed three out of five provided reference clients to learn about the drivers of their banking platform project. inc. Forrester intends to update vendor evaluations regularly as product capabilities and vendor strategies evolve. We conducted calls with the vendor’s executives to learn about key topics of their banking platform’s strategy. demos.The Forrester Wave™: Global Banking Platforms. The final scores generate the graphical depiction of the market based on current offering. partner. These default weightings are intended only as a starting point. We send evaluations to the vendors for their review. · Customer reference calls. Once we analyzed the completed vendor surveys. 2) customer success. From that initial pool of vendors. we gather details of product qualifications through a combination of questionnaires. and market presence. We set default weightings to reflect our analysis of the needs of large user companies — and/or other scenarios as outlined in the Forrester Wave document — and then score the vendors based on a clearly defined scale. user need assessments. To validate product and vendor qualifications. as well as the vendor’s support and responsiveness. we then narrow our final list. We choose these vendors based on: 1) product fit. and/ or discussions with client references. Data Sources Used In This Forrester Wave Forrester used a combination of three data sources to assess the strengths and weaknesses of each solution: · Vendor surveys. “Global Banking Platform Deals 2008: Vendors” report. “Global Banking Platform Deals 2009: Regions And Functionality” report. 2009. Forrester started collecting user needs some years ago. 2004. the latest report surveyed 17 vendors of globally deployed banking platforms on their 2009 deals. See the November 29. 2009. “Global Banking Platform Deals 2009” report. Q1 2009” report. inc. See the September 16. For example. Q4 2010 For Application Development & Delivery Professionals ENDNOTES 1 With the renewal train re-accelerating. 2006. Forrester research. 2003. 2 3 4 5 6 7 8 9 10 11 December 17. The primary intention of this functional map has been to help enterprise architects initiate bank-internal discussions about today’s and tomorrow’s application landscape as well as on a more-detailed level — for example. “The Forrester Wave™: Global Banking Platforms. Q1 2007” report. 2010. 2008. 2010 © 2010. financial services firms need to get their tickets soon to defend their competitive situation. Forrester’s research on banking IT in 2023 identified a series of requirements and the architectural layers of the future banking platform. See the June 4. Intellect Custody. and Intellect Treasury. “Vintage Banking Platforms Need Renewal” report. Forrester has defined a high-level functional overview with the key building blocks of functionality that banks need to run their business. see the January 19. 2010. and see the January 30. See the May 28. 2010.100 submitted 2009 deals to identify focal areas of interest. “End Of The Line For Vintage Banking Platforms” report. the functional map can also be used to assess the functional spectrum of a given banking platform offering. “Financial Services Firms Again Seek To Renew Their Application Landscape” report. After the end of the evaluation period. “Global Banking Platform Deals 2009” report. Forrester analyzed the more than 2.800 areas of functional requirements covered by the 1. 2009. Emerging business services ecosystems have the chance to shape the next step in interoperability. Forrester defines a banking platform as a core banking application along with most. 2008. “European Banks: A Functional Map As A Tool For IT Organizations And Their Application Strategy” report. However. See the November 28. redundant and/or shared functionality. Both of these vendors are members of the 2008 Pursuer group and the 2009 Regional Pursuer group as far as global banking platform deals in 2008 and 2009 are concerned. “The Forrester Wave™: Core Banking Suites. See the December 2. and see the May 28. See the November 14. The related reports offer details about global delivery capability. 2007.18 The Forrester Wave™: Global Banking Platforms. 2004. 2010. “Business Services Ecosystems For Banking: The Future Is Bright And Most Likely Heterogeneous” report. Infosys earned one of the top slots in Forrester Waves evaluating (retail) banking platforms. reproduction Prohibited . Polaris mentioned four further modules: Intellect Collections. See the August 19. Intellect Receivables. Forrester has surveyed global banking platform vendors since 2005. Q4 2006” report. “The Forrester Wave™: Retail Banking Platforms. and see the December 8. “The Future Shape Of Banking Architecture In 2023” report. See the November 8. “The Banking Platform Of The Future” report. if not all. of the relevant functions for a bank’s business as well as a comprehensive multichannel functionality. See the March 17. reproduction Prohibited December 17. 2007. inc. and see the June 4. Q4 2010 For Application Development & Delivery Professionals 19 12 Forrester named Infosys with Finacle a Global Challenger for the years 2006 to 2008.The Forrester Wave™: Global Banking Platforms. 2008. 13 © 2010. 2009. see the June 17. Members of the Global Power Seller group had more than 35 new banking platform clients in at least six regions of the world in 2009. 2010 . Temenos has been a Global Power Seller since 2006. See the May 28. “Global Banking Platform Deals 2007: Vendors” report. “Global Banking Platform Deals 2006: Vendors” report. “Global Banking Platform Deals 2009” report. “Global Banking Platform Deals 2008: Vendors” report. Forrester research. See the August 14. 2010. Sydney.com For a complete list of worldwide locations visit www. Madrid. Forrester Research. MA 02139 USA Tel: +1 617. marketing. Mass.613. and peer-to-peer executive programs. visit www.com. consulting. including Amsterdam.6000 Fax: +1 617.613.forrester. Frankfurt. For more than 27 years.com Nasdaq symbol: FORR www. Forrester works with professionals in 19 key roles at major companies providing proprietary research. Inc. Tel Aviv. and Toronto.367.5000 Email: forrester@forrester. 400 Technology Square Cambridge. For information on hard-copy or electronic reprints.com. 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