Core-banking refers to the systems that process data and transactions for primary accounts -- mortgages, loans and deposits. Aging infrastructures and core-banking systems are preventing banks around the world from being able to offer their customers innovative products quickly. Replacing these older "legacy" systems has become a priority for many banks that look to the operating efficiencies and flexibility of new-generation real-time systems to help increase customer satisfaction as well as decrease expense.
Under terms of the agreement, IBM will provide a full range of technology services, hardware, software and business-transformation consulting designed around Fidelityâs industry-leading Corebank offering.
The two companies have extensive joint-development expertise around Corebank. IBM and Fidelity are actively working together in Europe and Japan, designing Internet-enabled core-banking solutions to create new multi-channel banking environments that provide banks with the ability to respond quickly to changing customer expectations through a real-time product factory.
"IBM and Fidelity Information Systems have solid histories of helping banks transform to keep up with a customer base that shifts as often as the competitive landscape," said Mark Greene, general manager of IBMâs Global Banking Industry. "Today, most banksâ legacy core systems are sorely outdated. Banks need to embrace an on-demand model that simplifies infrastructure, integrates with peripheral applications and allows for easy outsourcing."
"Fidelityâs thirty-seven-year history in the financial services industry and extensive software development help ensure large banks that the software will continue to be enhanced and supported by a stable, financially successful player," said Roger Leitner, president of Fidelity Information Servicesâ Enterprise Banking Solutions division. "Adding IBMâs superior business-transformation services to the mix provides an unparalleled offering to Canadaâs Tier One banks."
Corebank relies on key IBM software components including data frameworks and models designed for the banking industry and used by Canadaâs top banks.