HFS Horizons: The Best Service Providers for Core Banking Modernization, 2024

HFS Horizons: The Best Service Providers for Core Banking Modernization, 2024 is for banking technology and operations leaders evaluating service providers to guide their transition to a modular, composable core.

Overview

HFS Horizons: The Best Service Providers for Core Banking Modernization, 2024 assesses 18 service providers across the HFS core banking modernization value chain, evaluating the why, what, how, and so what of their offerings and ranking each across three Horizons of value. It examines how providers help banks transition to a modular, composable core, sustain continuous improvement, and operate from it to seize new value. HFS defines Horizon 3 as the ability to drive OneEcosystem™ impact, Horizon 2 as enablement of the OneOffice™ model of front, middle, and back office alignment, and Horizon 1 as digitized processes that improve cost, speed, and efficiency.

Key findings

1. Horizon 3 Market Leaders include Accenture, Deloitte, EY, IBM, Infosys, and TCS. Horizon 2 Enterprise Innovators include Capgemini, Cognizant, HCLTech, LTIMindtree, NTT DATA, PwC, and Wipro. Horizon 1 Disruptors include Innova Solutions, Mphasis, Persistent, Tech Mahindra, and Virtusa.
2. The report evaluates 18 service providers across the HFS core banking modernization value chain, spanning progressive modernization, full core replacement, and greenfield new build approaches.
3. Six providers reach Horizon 3, the largest band, reflecting the HFS view that OneEcosystem™ impact separates the top tier in core banking modernization.
4. HFS identifies three camps of core banking technology partners and four primary approaches to core banking modernization.
5. HFS observes that banks often remain in what it terms “digital wrappers’ purgatory,” repairing and upgrading legacy cores rather than replacing monoliths in a single big bang.

HFS assesses that core banking modernization is always progressive, a journey rather than a fixed end-state, with the goal of a nimble, modular architecture that supports new business models, functions, and products. HFS finds that leading providers differentiate through partnerships, intellectual property, platforms, and ecosystem collaboration rather than the modernization approach chosen. HFS notes that the partner experience factor scores lower than in other studies, underscoring the need for stronger fintech and alliance collaboration across the modernization lifecycle.

Research methodology

The report is based on the HFS Horizons assessment of 18 service providers, drawing on provider briefings and RFIs alongside reference customer and partner surveys conducted in 2024.

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