Germanic Financial Services Market ready to drop in-house development paradigm

The Germanic back office market is becoming increasingly attractive to banking software vendors. "Historically, German banks have been fully devoted to in-house developed software. Some of these transaction systems are dating back to the late 70s. However, banks are now focused on cost per transaction and frustrated by the inability to actually manage their old systems. This leads to a shift in paradigm: buy rather than make becomes the norm." stated Stefan Schnitzler, Managing Partner of Cylite Consulting.

Cylite Consulting sees opportunities for banking application vendors that clearly address cost and ROI issues. "Vendors must be ready to commit to the German market in terms of presence and product localization. Addressing increasing vendor risk sensitivity and having a clear Germanic implementation strategy are other success factors for vendors trying to enter the market. However, buyers’ main focus is on cost per transaction and return on investment". Schnitzler reports.

Frankfurt, 22 August 2002

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