A bank Chief Information Officer (CIO) might consider maintaining multiple banking cores for several reasons:
- Legacy Bank Acquisition: The most common time a bank has multiple cores is when they are in the middle of an acquisition or a core conversion. Acquirers generally want to migrate as soon as possible to a single core.
- Geographical Expansion: Banks that expand into new regions or countries often face challenges integrating their existing core systems with the systems used in the new market. Maintaining multiple cores allows the bank to support diverse regulatory requirements, local banking practices, and specific functionalities that vary across regions.
- Specialized Services: Some banks may have acquired or developed specialized core systems to cater to specific customer segments or niche banking services. These systems might offer unique features, customized functionalities, or superior performance for targeted purposes. Maintaining multiple cores enables the bank to support these specialized services without compromising on their core banking operations.
In all these scenarios, Sandbox Banking Glyue platform can help make transitions or syncing seamless.
It’s worth noting that maintaining multiple banking cores can be complex and requires careful planning, integration, and ongoing management. It increases operational complexity, infrastructure costs, and the need for skilled resources. Therefore, the decision to adopt and maintain multiple cores should be based on a careful analysis of the bank’s specific requirements, risk appetite, and long-term strategic goals.