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Major banking companies in the UK are dependent on bespoke software for their core banking operations. These businesses are central to the banks’ success but are under pressure due to higher costs, increasing competition and additional regulation. We have long argued that the banks should increase their use of third party providers of more standardised software to reduce cost and complexity and to accelerate innovation. Following a series of meetings with software vendors and several company-specific reports, FinancialServicesViews now provides an overview of the banking software market. This analysis discusses the issues of dependence on bespoke software and comments on the key criteria for supplier choice as the banking sector increasingly looks to the suppliers of standardised software for innovation and a wider range of core banking functionality.
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