Magic Quadrant For G 734654 NDX

Magic Quadrant for Global Retail Core Banking
Published 9 February 2022 - ID G00734654 - 45 min read
By Analyst(s): Vittorio D'Orazio, Don Free

Initiatives: Financial Services Technology Modernization and Transformation
Demand for core banking packages is expected to grow in 2022 as

banks deliver on digitalization strategies while facing the
consequences and opportunities from the pandemic. Bank CIOs
should consider evaluating long-standing and emerging vendors,
especially when pursuing public cloud installations.
This Magic Quadrant is related to other research:
Critical Capabilities for Global Retail Core Banking
View All Magic Quadrants and Critical Capabilities
Additional Perspectives
■ Invest Implications: Magic Quadrant for Global Retail Core Banking
(15 February 2022)
Strategic Planning Assumption

By year-end 2023, public or private cloud will each account for 5% of commercial off-the-
shelf (COTS) core banking installations for an overall 10% of the COTS market.
Market Definition/Description
Gartner defines global retail core banking (GRCB) as a back‐office banking system that
both processes daily transactions and posts updates to accounts and other financial
records. Core banking systems (CBSs) typically include deposit, loan and credit
processing capabilities with interfaces to general ledger systems and reporting tools. This
Magic Quadrant assesses vendors on the multicurrency products they offer in support of
the bank’s financial transaction management in the retail banking market.
Gartner, Inc. | G00734654 Page 1 of 33

Gartner has chosen to keep this Magic Quadrant’s scope of inclusion restrictive,
consistent with those of recent years. Based on the global and retail focus of the software,
we have excluded Islamic banking vendors — many of which don’t support standard retail
banking capabilities — and other vendors whose offerings don’t meet Gartner’s
established criteria. In addition, this report is strongly focused on the global capabilities of
CBS providers. It does not address nor make note of the localization capabilities that CBS
vendors offer. Instead, these are treated in the set of reports presented in the Research
Index: Core Banking Selection Criteria That Matter, whose titles are also available in the
recommended reading section.
The definition of a CBS hasn’t changed significantly over the years. Nonetheless, six key
trends are emerging and are more pervasive within the decision-making process for
selecting a new core:
■ Composable Technologies: Customize Through Configuration
■ The Cloud: Core Banking Moves Into the Cloud
■ The Buy Option Dominates: Banks Aren’t Building CBS Anymore
■ The Rise of Standards: Beyond Internal Operational Agility
■ Ecosystems: More Than Just the Core (But They Are Linked to It)
■ Commoditization: Business Functions Aren’t Differentiating
These market trends need to be carefully considered by CIOs, and to help in this analysis,
they have been further explored in depth in the Market Overview section.
(Note: The analysis contained in this research is accurate as of 31 December 2020 with
regard to the market share and client installation base. For the product evaluation,
Gartner’s annual Magic Quadrant survey ran in March 2021, while client feedback was
updated in August 2021. The CBS market doesn’t shift dramatically year to year, but
nonetheless, Gartner clients should use standard inquiry processes for the most up-to-date
information on specific vendors and products.)

Magic Quadrant
Figure 1: Magic Quadrant for Global Retail Core Banking
Source: Gartner (February 2022)

Vendor Strengths and Cautions
EdgeVerve Systems
EdgeVerve Systems (hereafter referred to as EdgeVerve) is a Leader in this Magic

Quadrant. EdgeVerve is a wholly owned product subsidiary of Infosys, and it is
headquartered in India. It launched its Finacle Core Banking Solution in 2000 — the
survyed version as of the cutoff date is v.11.11. Gartner estimates that Finacle Core
Banking Solution has more than 500 installations worldwide, with India the country with
the most installations. EdgeVerve’s customer base is mainly universal banks in the small
to midsize segment, although the company has customers in every segment, including a
few global banks. The emerging Asia/Pacific (APAC) region has the highest share of
existing implementations.
Strengths
■ Customer experience: The Finacle offering has the highest customer experience
score across the examined vendors in the Magic Quadrant. Clients report superior
implementation and product support and servicing experience across both inquiries
and Gartner Peer Insights reviews.
■ Innovation: This is still a solid differentiator for the Finacle offering. EdgeVerve has
above-average R&D investments in its product, and it has innovated through
unconventional sources such as key partnerships, “hackathons” and innovative
pilots. For example, EdgeVerve annually runs a large hackathon that involves more
than 1,000 people and hundreds of organizations. Over the past few years,
technologies of continued focus for the Finacle offering have been cloud, artificial
intelligence (AI)/machine learning (ML) and the blockchain.
■ Market understanding: EdgeVerve has a sound market understanding practice. It is

structured and organized and one that translates customer feedback into new
product features via a well-thought roadmap. For example, the company
successfully introduced a pilot for the remittance market based on the blockchain
technology that then transformed into a new Finacle offering.
Cautions

■ Composable technologies — autonomy: Although Finacle’s packaged business
capability (PBC) count is high — signifying a higher degree of composable
granularity — PBC dependency is the primary contributing factor for a low overall
composable score. However, just over two-thirds of these PBC dependencies are tied
to a single reusable component (base component) that offers common capabilities
such as time zone and language management. Although PBC independence is a
primary characteristic of a composable application, this specific dependency is not a
significant limitation.
■ Sales execution: This element continues to be a challenge for EdgeVerve’s Finacle

offering. The number of new wins is lower than the mean of the vendors evaluated
for this market that includes many banks from the smallest tier that EdgeVerve
typically doesn’t target.
■ Communications: Timeliness of the vendor’s response to bank clients is among the

lowest across the vendors in this Magic Quadrant, as evidenced from Gartner Peer
Insights reviews. This issue, paired with the chronic low number of available
resources (as highlighted in surveys and Gartner calls with its bank clients), is
sometimes creating friction with clients during operations.
Mambu
Mambu is a Challenger in this Magic Quadrant. Mambu, headquartered in Germany and

launched in 2011, grew rapidly to today’s more than 300 installations worldwide. Mambu’s
CBS product is Mambu Banking Engine. The surveyed version as of the cutoff date is
v.9.77, although a versioning paradigm is not applicable to cloud-only products such as
Mambu. This system runs only via SaaS, often using the Amazon Web Services (AWS)
public cloud, although Mambu signed partnerships with both Google and Microsoft.
Mambu’s historical customer base includes microfinance institutions and fintechs.
However, now Mambu focuses on larger banks launching spinoffs or migrating. Its
installation base is spread mainly across Western Europe, Latin America and sub-Saharan
Africa. The country with the most installations is the U.K.
Strengths
■ Composable technologies: Mambu’s overall composable score is the highest among
the vendors in this Magic Quadrant. Mambu Banking Engine’s orchestration across
application, events and data demonstrates advanced interoperability, a key attribute
for composable applications.

■ Operations: Mambu’s operations to service its product have been evaluated as the
highest among the vendors in this Magic Quadrant. Mambu has the most frequent
and continued delivery of service packs and releases via the cloud and for the
availability of quality third-party resources (such as system integrators, service
providers and testers), according to some Gartner Peer Insights reviews.
■ Sales execution: Mambu achieved the highest number of new wins of the vendors
evaluated in this report, despite the pandemic, and it confirms an upward trend from
past years with more than 300 installations across the world.
Cautions
■ Sales strategy: Mambu’s sales strategy received among the lowest scores. Direct
sales are opportunistic, and the office network is still limited for a company that has
global ambitions. The involvement of partner resources in the sales cycle is limited
as well.
■ Market responsiveness and track record: Mambu’s capability to respond to clients’

requests has been evaluated by clients as lower than market average. This is largely
due to the low ability to understand the bank’s needs, as evidenced from Gartner
Peer Insights reviews, and to the low involvement of Mambu in managing any
localization layer of the product (which is usually delegated to partners).
■ Geographic strategy: This strategy is limited, as it is mainly performed via indirect

channels (for example, partners) and remote support. Mambu has 11 offices
worldwide, although five of them are operating as hubs, despite the many
installations. Mambu’s remote installations are usually performed by a micro team
of experts (that is, usually two consultants) that goes on-site for a couple of weeks
for installation and basic configuration. Then, the rest of the deployment — which
includes the customization and the integration with other systems — is remotely
supported during the following months and sometimes performed by partners.
Mambu doesn’t have a sound partner certification program for its product.

Oracle
Oracle is a Leader in this Magic Quadrant. Oracle Financial Services Software (OFSS) is a
banking product and solution company based in India and owned (75%) by Oracle.
OFSS’s CBS product is Oracle FLEXCUBE, which over the last two decades, has evolved to
become one of the most adopted CBS products in the world. Gartner estimates that
FLEXCUBE — the surveyed version as of the cutoff date is v. 14.4 — has more than 800
installations worldwide for all its versions. FLEXCUBE’s customer base is mainly universal
banks in the midsize segment, but there are customers in every segment, including a few
global banks. The majority of FLEXCUBE installations are in the sub-Saharan Africa
region and across emerging Asia/Pacific, with India having the most installations.
Strengths
■ Communications: According to customers’ feedback, OFSS is extremely good at
timely responding to product inquiries and accomplishing the key task of informing
clients about product capabilities and delivery. Also, OFSS is attentively listening to
clients’ voices and, although it has a large customer base, it is extremely organized
in delivering new and enhanced products and services that reflect market changes —
especially when new regulations emerge.
■ Implementations: Customers’ feedback is reporting high quality levels for the

availability of third-party resources, such as system integrators and testers, the peer
user community, and the product training for the bank personnel. Oracle has a well-
defined training and certification path for its partners.
■ Viability: Overall viability is also another differentiator for Oracle FLEXCUBE.

FLEXCUBE received a Strong value on Gartner’s Financial Statement Scorecard and
was strong from a product point of view in terms of ease of product deployment,
value for money rating and product referrals.
Cautions
■ Innovation: OFSS’s focus on innovation for core banking has been evaluated by
Gartner as limited, primarily since Oracle’s product strategy focuses on the horizontal
domain rather than on vertical industries such as banking. For example, in the Oracle
Cloud Marketplace, there are many horizontal applications. The banking ones make
up a very small subset of available applications and are difficult to locate.

■ Oracle centricity: The compulsory adoption of Oracle DBMS, the preferred product
deployment on the Oracle public cloud (aka Oracle Cloud Infrastructure [OCI]), and
the use of analytics that all refer to Oracle products are examples of the Oracle
centricity for Oracle FLEXCUBE. This situation doesn’t give bank customers much
choice and increases the risk of lock-in.
■ Sales execution and pricing: Oracle FLEXCUBE’s pricing still has the highest
maintenance fees across the vendors in this Magic Quadrant. Also, for sales
execution, customers’ feedback is below average for pricing and contract flexibility
(that is, terms and conditions) — largely due to the low flexibility in changing
contract conditions — according to some Gartner Peer Insights reviews.
Tata Consultancy Services
Tata Consultancy Services (TCS) is a Leader in this Magic Quadrant. TCS is

headquartered in India and launched its TCS BaNCS CBS in 2007 — the surveyed version
as of the cutoff date is v.17.3. The current TCS BaNCS is the result of the functional and
technical evolution of the original product and expansion with homegrown components.
Gartner estimates that TCS BaNCS has almost 400 installations worldwide, with India the
country, and emerging APAC the region, having the most installations. Its customer base is
mainly retail and cooperative banks (TCS BaNCS has more than 100 such small clients in
India via a joint venture with State Bank of India called C-Edge Technologies) and in the
small to midsize segment. It also has several large clients worldwide.
Strengths
■ Market understanding: The overall market understanding practice shows many
strengths. TCS BaNCS makes extensive use of customer polling for feedback, it
leverages the parent company’s consulting expertise, and it has a solid campus
infrastructure with a team of experts to capture market changes in the industry.
Furthermore, according to customer feedback, it is proactive in collecting
information.
■ Vertical strategy: TCS has superior capabilities in understanding vertical markets

that derive from its IT services practice. Its banking-specific centers of excellence
(COEs) across the globe and its campus in Bangalore become a differentiator in
both gathering talents and building innovative use cases and pilots for TCS BaNCS.
Moreover, these COEs are leveraged as training centers for TCS’s resources.
■ API marketplace: TCS has invested heavily in the API marketplace that has evolved
in the past year with many new components. The resulting advance in composable
delivery promotes higher levels of API usability and accessibility for banks.

Cautions
■ Operations: TCS BaNCS received the lowest score for operations among the vendors
in this Magic Quadrant. Its overall product release strategy looks insufficient to cope
with industry changes mainly due to infrequent and untimely major releases and the
maintenance of two sets of components (in COBOL and Java alike). Moreover, end
users’ peer community and training are not meeting clients’ expectations, according
to some Gartner Peer Insights reviews.
■ Overall viability: The overall viability score is below that of last year’s score for TCS
BaNCS. Moreover, for product viability, evidence from Gartner Peer Insights for ease
of product deployment and value for money rating indicates a below-average score
in this list of products. TCS’s low availability of quality third-party resources (for
example, system integrators) beyond its parent company (that is, TCS) and the low
investments in product R&D have been reported by its clients as reasons for this
dissatisfaction.
■ Composable technologies: TCS’s overall composable score is one of the lowest

across the vendors in this Magic Quadrant. TCS BaNCS levels of orchestration
across application, events and data are a primary contributor impacting
interoperability; clients evaluated the ease of integration using APIs and overall
rating of product capabilities as below average.
Temenos
Temenos is a Leader in this Magic Quadrant. Temenos is headquartered in Switzerland

and launched its Temenos Transact product in 1993 under the name Temenos T24.
Gartner surveyed the R20 version as of the cutoff date. Gartner estimates that Temenos
Transact has more than 800 installations worldwide, with the U.K. being the country with
the most installations. Its customer base is distributed across banks of all sizes. The
largest number is universal banks in the small to midsize segment, although in the last
few years, the company has signed some large new clients. Temenos Transact’s
installation base is mostly located across sub-Saharan Africa, Emerging Asia/Pacific and
Western Europe.
Strengths
■ Composable technologies: The overall composability score for Temenos Transact
has increased in the latest years due to the product’s many changes, such as the
increasing number of APIs and open APIs, the exposure of microservices, and the
use of a relational database. Temenos Transact’s advanced orchestration score
across applications, events and data is a key characteristic of composability.

■ Geographic strategy: Temenos has the best approach to the localization of its core
system. It has a blueprint approach to countries by having more than 40 “country
model bank” prebuilt approaches that greatly simplify the country adaptation for
regulatory compliance, accounting standards, language and business practices. This
approach is possible because it has many installations. Then, Temenos has a
network of offices that works as hubs that balance the country and regional
penetration rate with direct reachability.
■ Innovation: Temenos’ score in innovation was among the highest in this Magic
Quadrant due to three factors. The ecosystem for seeking innovation is extensive,
the involvement in innovation events (such as conferences and hackathons, either
organized by Temenos or by others) is high, and Temenos has many direct initiatives
in emerging technologies, such as blockchain and AI.
Cautions
■ Overall viability: Temenos’ overall viability dropped from Positive to Variable in
Gartner’s Financial Statement Scorecard’s evaluation. Product viability compounded
low scores for ease of product deployment. This is due to long customizations
(since addressed via reduced customization requirements as of R21, the Temenos
Banking Cloud), product referrals (in difficult geographies) and product “value for
money rating,” as evaluated in Gartner Peer Insights reviews.
■ Customer experience: Temenos’ customer experience score remains one of the

lowest across the examined vendors in this Magic Quadrant. This score is largely
due to the implementation experience that has been evaluated as not easy by bank
clients.
■ Operations: Product support and servicing experience are also areas in need of
improvement, according to customers’ feedback. Despite Temenos adding more
than 1,000 senior partner resources globally last year, issues with partners remain.
The availability of quality third-party resources (for example, system integrators), the
scarcity of senior key roles at projects, and the quality of technical support are still
mentioned by clients as challenges in Gartner Peer Insights reviews.

Vendors Added and Dropped
We review and adjust our inclusion criteria for Magic Quadrants as markets change. As a
result of these adjustments, the mix of vendors in any Magic Quadrant may change over
time. A vendor's appearance in a Magic Quadrant one year and not the next does not
necessarily indicate that we have changed our opinion of that vendor. It may be a
reflection of a change in the market and, therefore, changed evaluation criteria, or of a
change of focus by that vendor.
Added
No vendors were added to the list of vendors since the last version of this Magic Quadrant
report.
Dropped
Intellect Design Arena was dropped because its products did not meet the current
inclusion criteria (see the Inclusion and Exclusion Criteria section for more detail):
■ Active Market Presence Criteria: Intellect Design Arena’s Intellect Digital Core didn’t
meet the inclusion criteria for the minimum net new production clients going live
between 1 January 2019 and 30 December 2020. All criteria applied only to retail
core banking installations, evaluated with a tier analysis and excluding simple
updates (see the next section for further detail).
Inclusion and Exclusion Criteria

As in the past year’s assessments, exclusion/inclusion criteria have been focusing on two
areas:
■ Market penetration, which considers the overall installation base of the vendor’s
product in the market.
■ Active market presence, which takes into account the actual activity of the vendor in
the market in terms of sales execution.
For the sake of transparency, Gartner has decided to disclose in detail the reasoning
behind such criteria and provide a clearer and more satisfying response to the majority of
the questions that might arise.
As said, we have — as in the past — divided the criteria into two equally weighted
categories:

■ Market penetration, in terms of minimum number of installations by country and by
region
■ Active market presence, in terms of minimum number of new clients and go-live
installations
Moreover, in order to be included in our report, a vendor had to support multilingual and
multicurrency capabilities, plus global retail core banking functionality, for at least five of
these six services:
■ Current accounts
■ Savings
■ Fixed-term deposits
■ Consumer loans
■ Commercial loans
■ Mortgage loans
In particular, installations that were exclusively related to the lending systems were
excluded because they were not pertinent to core banking.
Finally, as in the past year’s assessment, we have improved these requirements by better
refining them as follows.
Market Penetration
Market Penetration by Country
The installation base of each product has been segmented by country. The minimum
number of countries with active installations has been set to 10, as in the past year’s
assessment. And one country has been considered as a valid count only if a minimum
number of two installations have been recorded in that country.
So, for example, a product with 10 installations in 10 countries (that is, one per country),
would count as zero for this requirement, while installations evenly distributed over five
countries (for example, two installations each) would count as five.

This change has been necessary to account for any opportunistic approach to the market,
compared to more consistent go-to-market strategies that consider entering a country
market for further penetration.
Market Penetration by Region
The installation base of each product has been also segmented by region, according to
Gartner’s taxonomy of 10 regions in the world (Western Europe, Eastern Europe, Eurasia,
the Middle East and North Africa [MENA], sub-Saharan Africa, North America, Latin
America, Emerging APAC, Mature APAC and Greater China).
The minimum number of regions with active installations has been set to four, as in the
past year’s assessment. And one region has been considered as a valid count only if a
minimum number of five installations have been recorded for that region.
So, for example, four installations in Western Europe would not suffice to demonstrate a
solid footprint in this region, and therefore, this region would not be counted.
This change is intended to exactly reflect the same philosophy as the previous
requirement: global footprint. We have found that, while a large number of vendors can
claim a sporadic presence in multiple regions, fewer can effectively guarantee a continued
presence that a bank would require during implementation and in postimplementation
support.
Active Market Presence

New Client Wins
A minimum number of net new client wins in the past eight rolling quarters — that is, from
1 January 2019 through 30 December 2020 — have been set to five as in the past year.
This threshold reflects the market activity that Gartner could evaluate according to data
that Gartner has collected from vendors, as well as from its own client interactions. On the
other hand, a much stricter screening of such client counts has been enforced by focusing
exclusively on:
■ Retail installations only — excluding wealth and corporate banking deployments.
■ Replacements and “greenfield” projects — excluding any update/major upgrade

deployment.
Only deployments with new clients have been considered as a valid count.

Moreover, Gartner has introduced a subcriterion to evaluate such new client names in
relation to the bank tiers (see the Gartner IT Glossary for the definition of bank tiers or
Research Index: Core Banking Selection Criteria That Matter).
This approach has been necessary to acknowledge that the complexity of core banking
deployments varies greatly between banks of different sizes. In general, large client
deliveries are much more difficult than small microfinance institution projects. Based on
data about the average duration of core banking projects, we have established a
“conversion table” that considers eight projects at Tier 5 banks to be comparable in
duration to one average large project at a Tier 1 bank. Projects in other bank tiers have a
proportional duration. In this fashion, for example, Gartner has considered as two valid
counts either one project with a Tier 1 bank or eight smaller projects with Tier 5 banks or
two projects with two Tier 3 banks.
Clients Going Live
A minimum number of clients going live in the past eight trolling quarters — that is, from 1
January 2019 through 30 December 2020 — have been maintained to eight. To enforce a
much stricter screening of such client counts, the same criteria on counting as the
previous New Client Wins section have been enforced.
Evaluation Criteria
In this year’s Magic Quadrant, Gartner has changed its sources for the evaluation data
points by:
■ Introducing a specific model that assesses composability for each vendor offering
based on four pillars of autonomy, modularity, orchestration and delivery.
Composability is a megatrend expected to play a key role in banks’ efforts to drive
digital business revenue through compelling models such as banking as a service
(BaaS).
■ Adopting the Gartner Peer Insights’ online tool to survey bank clients and get their
reviews on the product in this Magic Quadrant report. This data has been carefully
filtered and verified against other sources to ensure the utmost quality before use.
These data points now affect more than 50% of the Ability to Execute data points
and are provided by direct feedback of verified reviews of bank customers about
these products.

Ability to Execute
The evaluation criteria for this axis focus on market traction, and on how the vendor and
product are positioned to sustain support for near-term banking market requirements and
commitments.
Gartner has analyzed and compared 33 variables for each vendor’s CBS product, for a
total of 165 data points, to map the vendors based on their Ability to Execute. Gartner also
believes there’s no better way to assess the ability of a vendor to execute projects than
asking end users themselves.
For this reason, Gartner formally and extensively surveys vendor references. This enables
us to assess all steps of execution: sales and contract negotiation; the value of the
product capabilities; and support of installation, customer experience and postsales. This
year as well as in the past, we have formally excluded “Marketing Execution” from these
criteria. It had a very low weight in previous assessments, and we noted it was of no
importance for banks in their core banking selection process.
In addition to these annual reference surveys, reference interviews were conducted with, or
information was derived from, Gartner clients during the past eight rolling quarters in the
course of Gartner’s usual interactions with its clients.
This Magic Quadrant axis places high stress on the following criteria, which means these
criteria have increased importance and value for banks that are selecting CBSs:
■ Product or Service: This element of a vendor’s ability to execute is concentrated on:
■ The capabilities and roadmap of the product, in particular the overall

composable technology score (see the Composable Technologies: Customize
Through Configuration section)
■ Technical aspects, including the level and maturity of business service

reusability and real-time capacity of the system, as well as more specific
compatibility with DBMSs, OSs, hardware platforms and programming
languages adopted in the core system itself
■ The professional services offered to deploy that product

■ Overall Viability: This focuses on business units, financials, product strategy and
organization.
■ It relates to a vendor’s financial stability and is mainly calculated based on the

company’s financial performance according to Gartner’s Financial Statement
Scorecard for public companies (see Understanding the Methodology Behind
Gartner’s Financial Statement Scorecard for Public Companies). Financial
changes since the previous year are also taken into account to track the trend
direction and take into account improvements or declines in the rating.
■ Ease of deployment
■ Value for money evaluation
■ Referrals
■ R&D investments in product research by the vendor
■ Customer Experience: This element includes a focus on customer interactions linked

to:
■ Overall experience as defined by user clients
■ Implementation experience such as ease of deployments, issues, hurdles and

facilitators
■ Product support and servicing experience: feedback and objective evaluation
■ Operations: This area of evaluation centers on how the vendor organization is

equipped to provide infrastructure mechanisms or resources for the consistent
attainment of business goals, including:
■ Program and project management structures and initiatives
■ Maintenance and major release practices
■ Partner programs
■ Certifications
The following criteria have medium or lower importance, respectively, in this specific
assessment:

■ Sales Execution/Pricing: The sales process and its successful implementation in the
marketplace, including the contract negotiation and the pricing steps
■ Market Responsiveness and Track Record: The ability to understand the bank’s
needs and to effectively respond to changes in the market by modifying the product
and quickly meeting those new requirements.
We do not recognize the marketing execution criterion as relevant for CBS selection.
Table 1: Ability to Execute Evaluation Criteria
Evaluation Criteria Weighting
Product or Service High
Overall Viability High
Sales Execution/Pricing Medium
Market Responsiveness/Record Low
Marketing Execution NotRated
Customer Experience High
Operations High
Completeness of Vision
The evaluation criteria for this axis are based on the effectiveness of vendor product
strategies linked to the market. Gartner has analyzed and compared 32 variables for each
vendor’s product, leading to a total of 156 data points, in order to map the vendors’
Completeness of Vision.
This research gives high weight to the following criteria, which means that these criteria
have increased importance for banks selecting CBSs:

■ Market Understanding: This element of a vendor’s Completeness of Vision centers
on the vendor’s ability to respond to anticipated and unanticipated market
requirements, and on the process that supports that ability. This demonstrates how
closely connected the vendor is to the banking industry.
■ Offering (Product) Strategy: This element corresponds to the organizational

effectiveness of the vendor or product group’s development and delivery capabilities.
Consistency and quality are key attributes. This criterion also explores the vendor’s
product composable technology strategy through a scoring model providing an
overall composable technology score (see the Composable Technologies: Customize
Through Configuration section). The product roadmap is also analyzed for focus on
microservice development. Practical examples and use cases provided by the
vendors have been also evaluated and considered in the assessment.
■ Innovation: This element focuses on the vendor’s ability to enable innovation in its
standard product, nontraditional or differentiating partnerships, and associated
market delivery. Many aspects of innovation have been considered, including:
■ Use of innovation labs (innovation from inside)
■ Innovation by collaboration (innovation from outside) with partners (for

example, fintechs, system integrators, universities and end users)
■ Creation of innovation use cases (vendors were asked for a sample of use
cases and pilots around the main technology areas of innovation)
■ App marketplace capability (the app marketplace has been duly reviewed and
examined) Participation in competition and hackathons
■ Focus on innovative technology trends in the industry (for example, blockchain,

AI, and above all, the cloud)
■ Geographic Strategy: This element of the strategy demonstrates the ability of the
vendor to directly service the bank customers and follow its global strategy by
providing support across multiple geographies. Key factors that are taken into
consideration include:
■ Penetration rates at regional and country levels in terms of installations
■ Direct sales strategy and office presence
■ Sales workforce and sales representatives by geography

■ Specific sales and marketing initiatives
We have weighted the following criteria as medium, which means that they have regular
importance for banks selecting CBSs:
■ Sales Strategy: This element evaluates the strategy of the vendor in terms of
marketing and sales network, inclusive of an app marketplace, as well as the
developed methodology to support the business development process. Also, we
recognize the importance of partners in the sales and support activity for CBS
projects by analyzing the type of partners available for each vendor and the role they
have in CBS deliveries.
■ Vertical/Industry Strategy: This area of the evaluation is associated with banking

industry commitment to broader initiatives (for example, participation in standards
organizations and other industry groups), the vendor’s focus in terms of CBS
investments and dedication. This area also focuses on unique hiring practices,
training and other means of maintaining close industry relevance, such as specific
areas of research.
We do not consider the marketing strategy and the business model relevant for CBS
selection.

Table 2: Completeness of Vision Evaluation Criteria
Market Understanding High
Marketing Strategy NotRated
Sales Strategy Medium
Offering (Product) Strategy High
Business Model NotRated
Vertical/Industry Strategy Medium
Innovation High
Geographic Strategy High

Quadrant Descriptions
Leaders
Leaders in the global retail core banking market tend to possess a higher-level market
understanding than peers that helps in lead generation and, ultimately, in achieving more
sales. In addition, they make it their business to monitor market trends and funnel
progressive innovation into their product roadmaps. Most of them possess software
development quality certifications (such as Capability Maturity Model Integration [CMMI])
or are pursuing them. The Leaders are also, without exception, “thinking small” or
targeting composable architecture as a gateway to providing increased accessibility to the
granular functionality that banks need to drive the basis for differentiation.
Leaders have high viability and great customer feedback. Leaders also focus on
innovation — and the innovation trends that affect this particular market. For example,
they can show visionary capabilities in managing new trends such as the ecosystem for
open banking platforms by fostering the integration of their system with others’ products.
They also respond to client demand for cloud deployment by gradually making their
products more cloud-native with “APIfication” of the components and by introducing
standards and the use of sandboxes.
Challengers
The Challengers in this market typically earn high marks in implementation, customer
experience and product support. They also possess better-than-average financial viability,
showing solid improvement over the previous year. However, product composability,
market trends and innovation are usually low priorities for these vendors. Challengers also
have an opportunistic go-to-market approach, with limited market intelligence and
scattered geographic strategy.
Visionaries
Visionaries in the global retail core banking market have a solid focus on vertical industry
and geographic strategy, with an extensive network of offices and direct presence in their
target markets. They also foster innovation and innovative trends, particularly on
composable technology, although this forward-thinking approach might not find a
receptive market (due to still-low market maturity), which could limit Visionaries’ ability to
compete and execute in practice. Vendors in this group have been prevented from entering
the Leaders quadrant mainly because of below-average levels in certain important
capabilities.

Niche Players
Niche Players usually tend to have operations that are regionally limited and have lower
global market penetration than other players. Nonetheless, regional players in our Magic
Quadrant do not simply participate in a few countries. They still need to demonstrate
presence elsewhere, despite their deep specialization in one specific regional market.
Usually, they are less involved in international trends and sales, while demonstrating great
client proximity and intimacy, which are their most important differentiators.
Context
The success or failure of core banking programs can be traced back to the level of clarity
of outcomes defined in business cases (see Building the Digital Business Case for Core
Banking System Renewal) at the outset. Banks need to focus much more on the
preselection phase to ensure that their use cases are carefully constructed and
transparent, and that their objectives are documented before they issue an RFI or RFP.
In the selection of vendors, bank CIOs need to consider global vendors from this Magic
Quadrant side by side with other vendors operating in their own region and country. A
good overview of such a list of vendors is available in the banker’s guide reports that are
illustrated in Research Index: Core Banking Selection Criteria That Matter. In fact, regional
expertise and experience with banks of similar size and type are valuable assets to find in
a core banking vendor.
Gartner has focused its evaluation of the global retail CBSs on their ability to sell a
product that is aligned with the six key market trends:
■ Composable technologies: Gartner is assessing the relative capability of core

banking systems to align with the advance of composable technologies (see the
Composable Technologies: Customize Through Configuration section).
■ Cloud: CBS products need to be at least partially cloud-native and should pursue this
approach in their roadmap.
■ Sales execution: Since banks are buying CBS products, they need to have strong
suppliers that effectively market and sell their products, as well as strong local
support.
■ Standardization: CBS products of the future ought to be based on standards as far

as the product architecture allows that and less on custom applications, especially
for the interfaces.

■ Ecosystems: Vendors need to work within ecosystems and not work in isolation.
■ Commoditization of the business functions: Gartner has searched for areas of

differentiation of the vendors beyond the simple business functions that are
commoditizing.
Bank CIOs and other IT and business leaders also need to be introspective, recognizing
that their organizations possess unique characteristics and cultures that will impact a
program of this magnitude, whether positively or negatively. They also need to conduct a
serious self-diagnosis to identify negative traits, and reduce, mitigate, avoid or defer risk.
Sponsorship, communication and program management are a few examples of areas
that banks use to test maturity before embarking on core banking renewal (see Use This
Readiness Maturity Model to Avoid Core Banking Program Failure).
For these reasons, Gartner has further improved this year’s methodology by increasing the
granularity of the information detected for each CBS vendor/product (see the Evidence
section). We’ve also tracked the technology features, as well as the business implications,
against the many areas depicted in the Market Definition/Description section above.
Market Overview
This Magic Quadrant assesses the suitability of CBS providers and their product offerings
to address current market trends. This evaluation uncovers the primary strategies of these
vendors and products, reveals their underlying product and service capabilities, and
affirms their relevance to the changing conditions of the banking industry.
Core Banking Key Market Trends

Composable Technologies: Customize Through Configuration
The core banking market is evolving to adapt to significant shifts in the banking industry,
especially as it pertains to digital business. Gartner observes that the key to adapting to
these changes is the provision of enabling technologies to increase business agility and
reduce operational costs. The existence or maturity of this software design construct is
challenging to assess for banks that use conventional approaches within a CBS selection
process, but the potential impact to support digital business agility is huge. Composable
technologies can respond to this need.

Composable technologies are digital assets packaged as discrete components that deliver
independent, clear and complete business value. These components or packaged
business capabilities (PBCs) are building blocks that promote assembly and reassembly
of business processes and application experiences. Examples of such composable
components include know your customer (KYC), fraud detection, credit approval and
account origination.
The applicability of composable technologies to the CBS products is a new leading trend
that supports the strategic efforts of banks to decompose monolithic core banking
systems. PBCs — also referenced as API products — are the result of this decomposition.
Granularity may vary and range from PBCs that consist of a single API or PBCs composed
of multiple APIs.
Gartner is assessing the level of CBS composability through lenses or pillars of autonomy,
modularity, orchestration and discovery:
■ Autonomy — This pillar identifies the PBCs that can be functionally isolated,
deployed and supported as stand-alone entities (business capabilities). These PBCs
may have dependencies such that a consumer-lending PBC may require usage of the
vendor-supplied collateral PBC.
■ Modularity — This pillar exposes the APIs for each PBC. Dependent on the core
banking software design construct, the PBC’s relative granularity can differ
materially within a vendor product offering.
■ Orchestration — This pillar exposes the means of interaction through three

perspectives: application, events and data.
■ Discovery — This pillar captures the capabilities of the marketplace through which
banks discover and access vendor PBCs and APIs.
The Cloud: Core Banking Moves Into the Cloud

Cloud-only CBS strategies are on the rise and accelerating among a broad range of
banking segments and geographies. Cloud technology was of deep concern to many
regulators. Also, many bank executives didn’t feel comfortable using it, deeming it
inappropriate for core banking software for a long time as it was believed to be too risky
and unreliable.

Gartner anticipated this trend by closely monitoring it. In 2019, Gartner predicted that, by
year-end 2023, public or private cloud will each account for 5% of commercial off-the-
shelf core banking installations (see Predicts 2020: Ecosystems Will Empower Banking
Customers and Erode Banks’ Traditional Value Propositions). As per today, the majority of
the CBS cloud installations are in the private cloud.
Gartner estimates that 6.5% of core banking commercial off-the-shelf (COTS) CBS
installations ran from the cloud in 2020, and this percentage is predicted to increase to
10% by 2023, when public cloud usage will equal private cloud at 5% each.
Main drivers for this rise have been the greater agility and operational excellence that
cloud technology can deliver to the CBS installations.
Also, the majority of such installations are within greenfield projects of fintechs and
neobanks. Only a few migrations from the midsize banking tier are occurring and are due
to be completed soon (see Core Banking Hot Spot: Use Cases for Moving to the Cloud).
Nonetheless, just recently (September 2021) JP Morgan Chase and Thought Machine
announced a new core banking deal for replacing the retail core banking of the bank by
moving it into the cloud. This large deal — if accomplished — would certainly steer an
acceleration to the whole process (see also Core Banking Hot Spot: Moving the Core Into
the Cloud).
As with the above reference to API marketplaces and core vendors’ capacity to support
them, there isn’t any shortage of core vendor assertions that their CBSs are either cloud-
ready or cloud-native. Simply put, Gartner defines CBS public cloud offerings as either
cloud-based or cloud-native:
■ Cloud-based — Ported to the public cloud, largely intact. This is the so-called “lift and
shift” strategy, easier and faster to be pursued.
■ Cloud-native — Designed for the public cloud, able to effectively leverage

ecosystems and Internet of Things (IoT) using hybrid, multicloud and edge
computing. This is a SaaS approach that fully integrates with the cloud. This is more
complicated and longer to be deployed, especially with legacies that need to be
migrated. Moreover, cloud-native applications can truly bring the advantages of
metered subscription models to the banks, either for the core system or for any
application of the ecosystem they wish to purchase. Finally, cloud-native
installations can be more easily deployed in multitenancy that is particularly
important for global banks.

The Buy Option Dominates: Banks Aren’t Building CBS Anymore
Banks, just like any other organization, are keener to buy their software rather than
building it. This is a cross-industry common trend in the software industry, and banking is
not an exception to it. Buying software can be more convenient than building, as it does
not require the bank to run a software house that is up-to-date with skills and capabilities.
Instead, it enables greater focus on the use of the software and its integration with other
systems alike. The buying trend is also a consequence of both the commoditization of the
business functions and the standardization process that wants banks less adapting and
more adopting. It is well-debated if an in-house core system costs more or less than its
COTS package. The answer to this question depends on many different factors, such as
the economies of scale of the bank, the availability of requisite skills in the market and
labor cost. Nonetheless, it’s clear from hundreds of Gartner interactions with clients, that
the majority of banks with proprietary CBS aims to replace it with COTS applications. This
deliberate choice leads to the need to select reliable suppliers that can quickly deploy the
CBS, as well as maintaining it in the after-sales process. Most banks that self-support
CBSs aim to trade their high operational risk and huge maintenance implications for
vendor-supported CBS packages.
The Rise of Standards: Beyond Internal Operational Agility

As banks look to increase revenue through offering their services to other banks (BaaS) or
as participants of digital ecosystems, having API standards would decrease barriers to
entry.
What’s changed? Revenue-based market opportunities, such as BaaS, are garnering the
attention of executives across a broad segmentation of banks (see Embrace Banking as a
Service and Help Unlock New Revenue Streams). The characteristics of BaaS rely heavily
on business agility, especially so since BaaS is in an adolescent state of maturity. Banks
have learned the hard lesson that custom-developing their way to innovation is risky,
inefficient, ineffective and costly, while the adoption of standards in the architecture can
be more efficient, effective and inexpensive.
Bottom line: Bank CIOs are investing in adaptive business support technologies, and
standardization is a fundamental attribute that guides vendor selection by choosing
vendors that developed composable core systems with advanced standardized
orchestration.
Ecosystems: More Than Just the Core (But They Are Linked to It)

CBS offerings are evolving from autonomous islands of functionality to open,
collaborative platforms. Moreover, the shift to open platforms is integrating a broad
variety of participants within the banks’ value chain: financiall technology providers (that
is, fintechs), technology partners, bank employees, customers, regulatory authorities and
other banks. All these changes include a greater use of services rather than tangible
facilities that will soon become obsolete, while banks will differentiate in the way their
employees can service clients on the top of this technology infrastructure.
Digital business is causing banks to rethink many aspects of their business models, and
ecosystems are vital to this end. Banks can connect to new sales channels, increase the
type and value of customer interactions, and expand digital business platform model
choices.
Although many of the changes reside within the business, the underlying CBS plays a
distinct role in extending functions and capabilities beyond the four walls of the bank.
CIOs can’t execute effectively on digital business strategies and business models without
a CBS that has the necessary agility to open and securely expose back-office business
services to both known and unknown partners.
Therefore, CIOs selecting a new core system should keep into account the ease of
integration of such a system within a broader layer. This layer should include additional
stakeholders such as other IT vendors, regulators and data providers, as well as fintechs
that will play a greater role in the future of the banking industry (see How the Fintech
Swarms Will Change the Financial Service Industry in 2021).
Commoditization: Business Functions Aren’t Differentiating

Simply put, a savings account is a savings account. Gartner has not seen significant
differences among the more than 100 products examined in CBS analysis, and almost all
CBS products claim to have at least the basic business functionalities. Functional product
support within a CBS is a commodity.
Although most business functions are not differentiating, there are cases where specific
functionalities may be required within a particular target market, such as microlending or
automotive lending. Moreover, while new vendors are emerging with new CBS products,
they are still unable to supply the full range of business functions that — among long-
standing vendors — are usually commodities. In practice, these new products are not yet
fully end to end. This is the main competitive advantage that long-standing vendors have
with respect to the new ones.

Core Banking Hot Spot: Emerging Core Products Are Driving Differentiation exposes some
of the key differentiators between emerging and traditional CBS products.
Vendor Landscape
The number of net new deals for core banking replacement increased during the past year,
despite the COVID-19 pandemic. And the CBS market expanded across all banking tiers
and geographies by almost 2.4%. Based on client inquiries, face-to-face interactions and
surveys, Gartner still recognizes this growing demand for core banking renewal, driven
mainly by digital banking initiatives for which legacy systems prove to be inadequate.
Expectations for 2022 are even more positive as bank CIOs transition the role of CBS from
business inhibitor to a business-enabling technology. Gartner estimates that there will be
about a 12% increase in the number of projects, according to the work-in-progress pipeline
of the more than 80 surveyed vendors and 100 products.
Vendor movement continues in this market, though at a different pace and direction.
Some of the major changes within the past year include:
■ SAP’s division spinoff and change in majority ownership to Dediq (80%) to form the
new partnership named SAP Fioneer
■ Sopra Banking Software’s acquisition of Fidor Solutions
■ NEC’s acquisition of Avaloq Group
■ Objectway acquired Die Software Peter Fitzon
Impacted bank CIOs should expect defined objectives and timelines from vendors
undergoing mergers and acquisitions within six months of the deal closing.
Demand for unconventional and emerging core vendors, such as Finxact, Mambu,
Technisys and Thought Machine, is growing. This growth is not isolated to independent
startups or challenger banks; these vendors are also beginning to be considered in
traditional banks for core modernization. Larger banks are engaging with emerging core
vendors (for example, Mambu or Thought Machine) at the early-level stage. Their value
propositions are cloud-native, fine-grained business service models that promise to fuel
collaboration through extended partners and ecosystems. Demand for alternative CBS
offerings that support the pace of progressive digital business platform models kept
increasing during 2021 and is expected to become the norm in RFPs.
Market Movers

The largest vendors in this global CBS market have also been the market movers —
namely, Temenos, Mambu and Oracle, with a few new dozen installations each. However,
the size of these deals varies between these three vendors. So, while “smaller vendors”
succeed at selling many small installations, “larger vendors” typically focus on larger
deployments. The regions with the largest number of new installations have been Latin
America, Western Europe and sub-Saharan Africa, while the largest market movers by
region are:
■ Latin America: Mambu, Temenos and Oracle
■ Western Europe: Temenos and Mambu
■ Sub-Saharan Africa: Temenos, EdgeVerve Systems and Oracle
Evidence
Gartner surveyed all of the most important CBS vendors operating in the world in February
2021 as part of our 2021 Global Core Banking System Survey. Ninety-four vendors were
surveyed for a total of 113 products actively sold in the CBS marketplace. These products
make a market of more than 15,000 in production installations around the globe and
another 1,570 in progress. Gartner collected information about more than 7,000 of such
installations and verified most of them with clients during the past decade. The five
products (and vendors) presented in this Magic Quadrant have been the result of a huge
refinement and data cleansing work to provide the top global and retail core banking
products. Banks may wish to compare these five providers to vendors that might be
strong in one region (albeit not globally) or in certain subsectors (for example, private or
corporate banking). For such regional analysis, we remand the reader to our “banker’s
guide” reports shown in the recommended reading section.
The Gartner Financial Statement Scorecard is a formal rating usually built by Gartner
Invest as part of the Vendor Rating methodology. The Financial Statement Scorecard
methodology blends five publicly available criteria to give a top-level rating of a provider’s
financial strength. The overall methodology of this rating is published in Understanding
the Methodology Behind Gartner’s Financial Statement Scorecard for Public Companies.
Such methodology is usually applied to large companies for which Gartner periodically
revises those ratings. For this report, we usually ask Gartner Invest to purposely build such
financial ratings out of the financial data that is either publicly available (for example, for
the listed companies) or provided to us in our surveys (for example, for private companies
that don’t publish this data).

Evaluation Criteria Definitions
Ability to Execute
Product/Service: Core goods and services offered by the vendor for the defined market.
This includes current product/service capabilities, quality, feature sets, skills and so on,
whether offered natively or through OEM agreements/partnerships as defined in the
market definition and detailed in the subcriteria.
Overall Viability: Viability includes an assessment of the overall organization's financial

health, the financial and practical success of the business unit, and the likelihood that the
individual business unit will continue investing in the product, will continue offering the
product and will advance the state of the art within the organization's portfolio of
products.
Sales Execution/Pricing: The vendor's capabilities in all presales activities and the
structure that supports them. This includes deal management, pricing and negotiation,
presales support, and the overall effectiveness of the sales channel.
Market Responsiveness/Record: Ability to respond, change direction, be flexible and

achieve competitive success as opportunities develop, competitors act, customer needs
evolve and market dynamics change. This criterion also considers the vendor's history of
responsiveness.
Marketing Execution: The clarity, quality, creativity and efficacy of programs designed to
deliver the organization's message to influence the market, promote the brand and
business, increase awareness of the products, and establish a positive identification with
the product/brand and organization in the minds of buyers. This "mind share" can be
driven by a combination of publicity, promotional initiatives, thought leadership, word of
mouth and sales activities.
Customer Experience: Relationships, products and services/programs that enable clients

to be successful with the products evaluated. Specifically, this includes the ways
customers receive technical support or account support. This can also include ancillary
tools, customer support programs (and the quality thereof), availability of user groups,
service-level agreements and so on.
Operations: The ability of the organization to meet its goals and commitments. Factors
include the quality of the organizational structure, including skills, experiences, programs,
systems and other vehicles that enable the organization to operate effectively and
efficiently on an ongoing basis.

Completeness of Vision
Market Understanding: Ability of the vendor to understand buyers' wants and needs and
to translate those into products and services. Vendors that show the highest degree of
vision listen to and understand buyers' wants and needs, and can shape or enhance those
with their added vision.
Marketing Strategy: A clear, differentiated set of messages consistently communicated

throughout the organization and externalized through the website, advertising, customer
programs and positioning statements.
Sales Strategy: The strategy for selling products that uses the appropriate network of
direct and indirect sales, marketing, service, and communication affiliates that extend the
scope and depth of market reach, skills, expertise, technologies, services and the customer
base.
Offering (Product) Strategy: The vendor's approach to product development and delivery
that emphasizes differentiation, functionality, methodology and feature sets as they map
to current and future requirements.
Business Model: The soundness and logic of the vendor's underlying business
proposition.
Vertical/Industry Strategy: The vendor's strategy to direct resources, skills and offerings
to meet the specific needs of individual market segments, including vertical markets.
Innovation: Direct, related, complementary and synergistic layouts of resources, expertise

or capital for investment, consolidation, defensive or pre-emptive purposes.
Geographic Strategy: The vendor's strategy to direct resources, skills and offerings to
meet the specific needs of geographies outside the "home" or native geography, either
directly or through partners, channels and subsidiaries as appropriate for that geography
and market.
Document Revision History

Magic Quadrant for Global Retail Core Banking - 5 August 2020
Magic Quadrant for Global Retail Core Banking - 22 July 2019
Magic Quadrant for Global Retail Core Banking - 28 June 2018

Magic Quadrant for Global Retail Core Banking - 10 July 2017
Magic Quadrant for Global Retail Core Banking - 21 April 2016
Magic Quadrant for International Retail Core Banking - 13 November 2014
Magic Quadrant for International Retail Core Banking - 8 October 2013
Magic Quadrant for International Retail Core Banking - 26 September 2012
Magic Quadrant for International Retail Core Banking - 8 July 2009
Magic Quadrant for International Retail Core Banking, 2008 - 3 April 2008
Magic Quadrant for International Retail Core Banking, 2006 - 25 January 2007
Recommended by the Authors

Some documents may not be available as part of your current Gartner subscription.
How Markets and Vendors Are Evaluated in Gartner Magic Quadrants

Critical Capabilities for Global Retail Core Banking
Core Banking Hot Spot: Moving the Core Into the Cloud
Core Banking Hot Spot: Use Cases for Moving to the Cloud
Core Banking Hot Spot: Emerging Core Products Are Driving Differentiation
How the Fintech Swarms Will Change the Financial Service Industry in 2021
Top Trends in the Cloud Heat Map for Banking and Investment Services for 2021
A Banker’s Guide to Core Banking Systems for Latin America
A Banker’s Guide to Core Banking Solutions for Western Europe
A Banker’s Guide to Core Banking Solutions for Emerging Asia/Pacific

© 2023 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of
Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form
without Gartner's prior written permission. It consists of the opinions of Gartner's research
organization, which should not be construed as statements of fact. While the information contained in
this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties
as to the accuracy, completeness or adequacy of such information. Although Gartner research may
address legal and financial issues, Gartner does not provide legal or investment advice and its research
should not be construed or used as such. Your access and use of this publication are governed by
Gartner's Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its
research is produced independently by its research organization without input or influence from any
third party. For further information, see "Guiding Principles on Independence and Objectivity." Gartner
research may not be used as input into or for the training or development of generative artificial
intelligence, machine learning, algorithms, software, or related technologies.

Table 1: Ability to Execute Evaluation Criteria
Product or Service High
Overall Viability High
Sales Execution/Pricing Medium
Market Responsiveness/Record Low
Marketing Execution NotRated
Customer Experience High
Operations High
Gartner, Inc. | G00734654 Page 1A of 2A

Table 2: Completeness of Vision Evaluation Criteria
Market Understanding High
Marketing Strategy NotRated
Sales Strategy Medium
Offering (Product) Strategy High
Business Model NotRated
Vertical/Industry Strategy Medium
Innovation High
Geographic Strategy High
Gartner, Inc. | G00734654 Page 2A of 2A

Magic Quadrant For G 734654 NDX

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Magic Quadrant For G 734654 NDX

Uploaded by

Copyright:

Available Formats

Magic Quadrant for Global Retail Core Banking

Published 9 February 2022 - ID G00734654 - 45 min read

By Analyst(s): Vittorio D'Orazio, Don Free

Demand for core banking packages is expected to grow in 2022 as

This Magic Quadrant is related to other research:

Critical Capabilities for Global Retail Core Banking

View All Magic Quadrants and Critical Capabilities

Strategic Planning Assumption

Gartner, Inc. | G00734654 Page 1 of 33

■ Composable Technologies: Customize Through Conﬁguration

■ The Cloud: Core Banking Moves Into the Cloud

■ The Buy Option Dominates: Banks Aren’t Building CBS Anymore

■ The Rise of Standards: Beyond Internal Operational Agility

■ Commoditization: Business Functions Aren’t Differentiating

Gartner, Inc. | G00734654 Page 2 of 33

Source: Gartner (February 2022)

Gartner, Inc. | G00734654 Page 3 of 33

EdgeVerve Systems (hereafter referred to as EdgeVerve) is a Leader in this Magic

■ Market understanding: EdgeVerve has a sound market understanding practice. It is

Gartner, Inc. | G00734654 Page 4 of 33

■ Sales execution: This element continues to be a challenge for EdgeVerve’s Finacle

■ Communications: Timeliness of the vendor’s response to bank clients is among the

Mambu is a Challenger in this Magic Quadrant. Mambu, headquartered in Germany and

Gartner, Inc. | G00734654 Page 5 of 33

■ Market responsiveness and track record: Mambu’s capability to respond to clients’

■ Geographic strategy: This strategy is limited, as it is mainly performed via indirect

Gartner, Inc. | G00734654 Page 6 of 33

■ Implementations: Customers’ feedback is reporting high quality levels for the

■ Viability: Overall viability is also another differentiator for Oracle FLEXCUBE.

Gartner, Inc. | G00734654 Page 7 of 33

Tata Consultancy Services

Tata Consultancy Services (TCS) is a Leader in this Magic Quadrant. TCS is

■ Vertical strategy: TCS has superior capabilities in understanding vertical markets

Gartner, Inc. | G00734654 Page 8 of 33

■ Composable technologies: TCS’s overall composable score is one of the lowest

Temenos is a Leader in this Magic Quadrant. Temenos is headquartered in Switzerland

Gartner, Inc. | G00734654 Page 9 of 33

■ Customer experience: Temenos’ customer experience score remains one of the

Gartner, Inc. | G00734654 Page 10 of 33

Inclusion and Exclusion Criteria

Gartner, Inc. | G00734654 Page 11 of 33

Gartner, Inc. | G00734654 Page 12 of 33

Market Penetration by Region

Active Market Presence

■ Retail installations only — excluding wealth and corporate banking deployments.

■ Replacements and “greenﬁeld” projects — excluding any update/major upgrade

Gartner, Inc. | G00734654 Page 13 of 33

Clients Going Live

Gartner, Inc. | G00734654 Page 14 of 33

■ Product or Service: This element of a vendor’s ability to execute is concentrated on:

■ The capabilities and roadmap of the product, in particular the overall

■ Technical aspects, including the level and maturity of business service

■ The professional services offered to deploy that product

Gartner, Inc. | G00734654 Page 15 of 33

■ It relates to a vendor’s ﬁnancial stability and is mainly calculated based on the

■ Value for money evaluation

■ R&D investments in product research by the vendor

■ Customer Experience: This element includes a focus on customer interactions linked

■ Overall experience as deﬁned by user clients

■ Implementation experience such as ease of deployments, issues, hurdles and

■ Product support and servicing experience: feedback and objective evaluation

■ Operations: This area of evaluation centers on how the vendor organization is