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Global Banking Platform Deals Survey 2016: Growth Areas & Vendor Perspectives

Learn about the key growth areas in the global banking platform market, vendor perspectives, and what it means for the industry. Gain insights from Forrester's Global Banking Platform Deals Survey 2016.

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Global Banking Platform Deals Survey 2016: Growth Areas & Vendor Perspectives

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  1. WEBINARGlobal Banking Platform Deals Survey 2016 Jost Hoppermann, Vice President, Principal Analyst March 8, 2016. Call in at 10:55 a.m. Eastern time

  2. Agenda • Rules of the game • Participation and nonparticipation • Key growth areas • Vendor perspective • Regional perspective • What it means

  3. Agenda • Rules of the game • Participation and nonparticipation • Key growth areas • Vendor perspective • Regional perspective • What it means

  4. Definitions: banking platforms A banking platform is a comprehensive but basically modular, pre-integrated set of banking applications designed to cover traditional areas of banking like retail and corporate banking. In particular, it contains a core banking system and omnichannel functionality. A customer-centric banking platform is a banking platform with a strong focus on customer experience, channels, social media, and analytics, as well as real-time, customer-facing functionality and information provisioning.

  5. Typical survey challenges Introduction and communication of a set of guidelines and determining which 2015 deals should be submitted and counted

  6. The rules of the game level the playing field Banking platform functionality Banking-specific functionality Only in 2015 New customers and consideration of extended business Named wins Solutions — not licenses, modules, or projects Differentiation between hosted and nonhosted deals Exceptions may occur

  7. Agenda • Rules of the game • Participation and nonparticipation • Key growth areas • Vendor perspective • Regional perspective • What it means

  8. Invited vendors SOME VENDORS DECIDED NOT TO PARTICIPATE (EXAMPLES) Survey rule: Forrester won’t continue inviting a vendor that did not participate 3x in a row or did not participate after accepting the invitation (unless the vendor explicitly expresses its desire to participate).

  9. Forrester evaluated more than 1,846 2015 banking platform deals submitted by 31 vendors.

  10. Vendor participation 2005 to 2015

  11. Former participants 2005 to 2015

  12. Agenda • Rules of the game • Participation and nonparticipation • Key growth areas • Vendor perspective • Regional perspective • What it means

  13. Forrester recognized367 deals with new clients and 772 extended business deals.

  14. Did the global banking platform market grow? 26 vendors participating in current and previous banking platform deals surveys: • New named clients: 9% growth (-8%) • Extended business: 38% growth (23%) • Combined deals: 28% growth (8%) • Top five vendors’ new named deals share: 50% (50%) • Top five vendors’ combined deals share: 57% (55%) Numbers in brackets = Previous year

  15. Key areas of growth: the full picture Base: 5,340 functional deal elements; Source: Forrester’s Global Banking Platform Deals Survey 2016

  16. Key areas of growth (FUNCTIONAL AREAS WITH LESS THAN 3% ONLY) Base: 5,340 functional deal elements; Source: Forrester’s Global Banking Platform Deals Survey 2016

  17. Key findings on functionality Directly customer-facing solutions Examples: omnichannel and mobile banking and customer data management Growing share of functional deal elements compared with the previous year but slowing growth Customer-supporting solutions Examples: core banking, lending, and payments Shrinking share of functional deal elements compared with the previous year Considering that one vendor from 2014 with a strong core focus is missing: about stable share

  18. Agenda • Rules of the game • Participation and nonparticipation • Key growth areas • Vendor perspective • Regional perspective • What it means

  19. New named banking platform clients Base: 1,846 submitted 2015 banking platform deals; Source: Forrester’s Global Banking Platform Deals Survey 2016

  20. New named banking platform clients (VENDORS WITH LESS THAN FOUR DEALS ONLY) Base: 1,846 submitted 2015 banking platform deals; Source: Forrester’s Global Banking Platform Deals Survey 2016

  21. New named banking platform deals by geography >35 ● Temenos Oracle ● SAP ● Jack Henry & Ass.* >15 ≤ 35 ● FIS ● EdgeVerve ● Intellect Design Counted new named deals 15 ● Misys ●CSI ● Sopra Banking ● TCS >5 ≤ 15 Asseco, Capital Banking ● ● Profile 8 vendors Path Solutions ● ● Diasoft ● Nelito, Technisys ● D+H Nucleus Software ● ● Avaloq ≤5 6 ● BML Istisharat 2 3 ● ICSFS ● ERI, DL&A 1 2 to 3 4 to 5 6 to 7 ● Group 1 ● ITS and Sword-APAK Covered regions of the world Group 1: Cobiscorp, Flexsoft, Intrasoft-Intl, Natech, and SAB Base: 1,846 submitted 2015 banking platform deals; Source: Forrester’s Global Banking Platform Deals Survey 2016 *Estimate

  22. New named deals categorized Greater than 35 Global power sellers* Greater than 15 but less than or equal to 35 Regional pursuers Global challengers* Counted new named deals Greater than five but less than or equal to 15 Global pursuers* Less than or equal to five Base and regional players 1 2 to 3 4 to 5 6 to 7 Covered regions of the world *Special qualification rules apply.

  23. The 2015 global vendor pyramid: new named clients >35 new named deals, more than five regions* Temenos Global power sellers >15 new named deals, more than three regions* Global challengers Intellect Design >5 new named deals, more than three regions* Global pursuers >5 new named deals, two to three regions Regional pursuers Base and regional players ≤5 new named deals or <2 regions Avaloq, BML Istisharat, Cobiscorp, CSI, DL&A, ERI, FIS, Flexsoft, ICSFS, Intrasoft-Intl, ITS, Natech, Nelito, SAB, Sword-APAK, Technisys *Special qualification rules apply.

  24. The 2015 global vendor pyramid: change >35 new named deals, more than five regions* Global power sellers >15 new named deals, more than three regions* Global challengers >5 new named deals, more than three regions* Global pursuers >5 new named deals, two to three regions Regional pursuers Base and regional players ≤5 new named deals or <2 regions *Special qualification rules apply.

  25. New named and extended business clients (combined deals) Base: 1,846 submitted 2015 banking platform deals; Source: Forrester’s Global Banking Platform Deals Survey 2016

  26. Combined biz banking platform deals (VENDORS WITH LESS THAN 15 DEALS ONLY) Base: 1,846 submitted 2015 banking platform deals; Source: Forrester’s Global Banking Platform Deals Survey 2016

  27. All counted banking platform deals by geography ≥75 ● Misys Temenos ● Oracle ● ● Sopra Banking ≥50 Counted new named and extended business deals ≥20 ● Diasoft ● EdgeVerve, SAB Intellect Design ● SAP ● ● FIS Asseco ● 19 ● Path Solutions ● ICSFS ● Avaloq TCS ● ● Capital Banking ● Profile ● CSI <20 ● Flexsoft, Natech ● Technisys ● Nelito. Nucleus Software ● 9 vendors ● ERI ● D+H ● Sword-APAK. 1 2 to 3 4 to 5 6 to 7 ● Intrasoft-Intl. ● DL&A, Cobiscorp Covered regions of the world ● BML Istisharat, ITS 1 2 3 Base: 1,846 submitted 2015 banking platform deals; Source: Forrester’s Global Banking Platform Deals Survey 2016

  28. All counted banking platform deals by geography (cont.) Greater than or equal to 75 Top global players* Greater than or equal to 50 Major global players* Major players Counted new named and extended business deals Greater than or equal to 20 Global players* Less than 20 Solid players 1 2 to 3 4 to 5 6 to 7 Covered regions of the world *Special qualification rules apply.

  29. The 2015 global vendor pyramid for all counted deals Top global players ≥75 counted, more than five regions* Oracle, Temenos ≥50 counted deals,more than three regions* Major global players ≥20 counted deals,more than three regions* Global players ≥20 counted deals,two to three regions Major players <20 counted deals or <2 regions BML Istisharat, Cobiscorp, CSI, D+H, DL&A, ERI, Flexsoft, ICSFS, Intrasoft-Intl., ITS, Natech, Nelito, Nucleus Software, Profile, Sword-APAK, and Technisys Solid players *Special qualification rules apply.

  30. The 2015 global vendor pyramid: change Top global players ≥75 counted, more than five regions* ≥50 counted deals,more than three regions* Major global players ≥20 counted deals,more than three regions* Global players ≥20 counted deals,two to three regions Major players <20 counted deals or <2 regions Solid players *Special qualification rules apply.

  31. Agenda • Rules of the game • Participation and nonparticipation • Key growth areas • Vendor perspective • Regional perspective • What it means

  32. Banking platform buy activity 2015 GLOBAL BANKING PLATFORM DEALS BY GEOGRAPHY 84 70 144 410 23 96 44 45 213 14 171 31 35 126 Counted new named deals Counted combined deals Base: 1,846 submitted 2015 banking platform deals; Source: Forrester’s Global Banking Platform Deals Survey 2016

  33. Regional market dynamics changed again

  34. Buy activity by region: combined deals Temenos,Profile, Oracle, and Asseco FIS*, Temenos,and CSI SAP andTemenos ( . . . ) Oracle,Intellect D.,and Temenos Sopra B.,Temenos,EdgeVerveand ( . . . ) SAP andTechnisys( . . . ) Capital B.,EdgeVerve,and Path S. Top three vendors by new named deals in a region *Multiple core banking solutions Base: 1,846 submitted 2015 banking platform deals; Source: Forrester’s Global Banking Platform Deals Survey 2016

  35. Buy activity by region: combined deals Temenos, FIS*, andOracle Misys,Sopra B., and Diasoft SAP andTemenos ( . . . ) Oracle,Misys, andTemenos Sopra B.,Temenos,and Oracle Technisys,SAP, and DL&A Misys,ICSFS. and Path S: Top three vendors by combined deals in a region *Multiple core banking solutions Base: 1,846 submitted 2015 banking platform deals; Source: Forrester’s Global Banking Platform Deals Survey 2016

  36. Agenda • Rules of the game • Participation and nonparticipation • Key growth areas • Vendor perspective • Regional perspective • What it means

  37. Different categories of vendors will reshape the banking platform market 3 1 3 2 2 2 Counted deals 8 2 4 4 3 Number of vendors with new named deals 6 1 7 5 9 Number of vendors with combined deals 1 2 to 3 4 to 5 6 to 7 Covered regions of the world Base: 1,846 submitted 2015 banking platform deals; Source: Forrester’s Global Banking Platform Deals Survey 2016

  38. Digital banking needs more than great CX FS firms continue to increase their focus on CX — albeit slower than in the past. They are at risk of neglecting the customer-facing, real-time business capabilities crucial to digital banking. A changing market with . . . A few key players A few further candidates for the top tier Plenty of smaller and/or regional players A heterogeneous mix of modern and mature technologies . . . makes solution selection challenging without deep market and solution insight.

  39. Thank you to all participating vendors! 5 plus years without gap:BML Istisharat, Cobiscorp, DL&A, ERI, Flexsoft, Intrasoft Intl., Nucleus Software, SAB 10 plus years without gap:EdgeVerve (Infosys), Intellect Design, Misys, SAP, Sopra Banking, TCS, Temenos

  40. Jost Hoppermann +49 (6)99 592 9837 jhoppermann@forrester.com

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