CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

The banking industry has been around for millennia. Some institutions in existence now

were originally chartered in the middle ages1 and the word “bank” itself has biblical origins. Banks

keep our deposits, provide us credit, facilitate payments and are an integral part of our social,

economic and political systems.

Business today is conducted in an age of highly complex technology imposing on banking

officials the need to implement sophisticated banking systems which accord with present day

needs. Consequently, paper based transactions are now being replaced by electronic based

transactions (Agboola, 2006).

Banks have not only adopted computerization but advanced from very simple and basic

retail operations of deposits and cash withdrawal as well as cheque processing, to the delivery of

sophisticated products which came as a result of keen competition in view of unprecedented

upsurge in the number of banks and branches as well as advancement in the information

technology. There was the need to innovate and modernize banking operation in the face of

increased market pressure and customers demand for improved service delivery and increased

convenience (Salawu and Salawu, 2007).

The design of any software system needs to be thought out and have certain aspects

considered from the beginning. By choosing specific quality attributes to be designed into the

architecture, there is a greater chance that the system will be successful. Specifically, for a bank

system, there will be several important attributes to focus on. First, the performance of the system

needs to be high quality. Bank workers, people at ATMs, and bank administrators will all be

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interacting with other systems and so the new system will need to perform fast enough to allow

everyone to complete the necessary tasks.

Also, the reliability and security of the system are two of the most important thing to focus on. The

system needs to be reliable such that it does not crash and has a very high uptime. The security is

important because banks hold a large amount of private information. If this private information

became available to people who should not have access, the company which made the system

could face a lot of legal issues due to the breach of privacy. A bank system needs to make sure that

people who are authorized to get in the system have the ability to do what they need to, and more

importantly keep unauthorized users out of the system and unable to attack it.

The amount of sensitive data, customers and market demands and new technologies force

the use of sophisticated IT solutions and constant development in this area. The growing

infrastructure is becoming more and more complex. This usually invisible infrastructure is the very

complex technology system that every function within every bank is built upon, from assessing

loan applications to detecting money laundering and to making payments into accounts (Pilarcyzk,

2016).

Simply put, when this technology does not work, the bank does not work and the public wants to

know why. Such problems are causing huge costs for the banks. For example, in 2012, millions of

Royal Bank of Scotland customers were affected by problems with online banking and payments

after a software upgrade went wrong. The problem existed for three hours on Monday, one of the

busiest online shopping days of the year. As it was described, “that cost the bank 175 million

pounds (286 million dollars) in compensation for customers and extra payments to staff after the

bank opened branches for longer in response” (Pilarcyzk, 2016).

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 However, the advancement in technology has brought the banking sector to the use of

banking software referred to as the core banking software for the control and management of

banking activities.

Core banking is a general term used to describe the services provided by a group of

network bank branches, bank customers may occur their funds and other simple transaction from

any of the member. Thus Core Banking Solution is a stride-headed towards enhancing the

customer services through Any-where and Any-time banking (Manjushree, 2014).

Simply put, core banking helps customers to remove temporal and spatial constraints, and utilize

networks and telecommunications technology to transfer resources (money) in banking system

(Heidarpour & Tahmasbi, 2009).

Core banking solution is a set of robust software components designed to meet the

challenges of today’s banking market. The advanced technology infrastructure supporting the core

banking solution and high standard of business functionality provides financial institutions a

competitive advantage. Core banking solution is a set of integrated core banking components

which could be tailored to fit the Institution’s individual business requirements. Core Banking

Solution (CBS) empowers banks to transform their business, leveraging agile new generation

technologies. CORE stands for "centralized online real-time environment". This basically means

that all the bank's branches access applications from centralized datacenters. This means that the

deposits made are reflected immediately on the bank's servers and the customer can withdraw the

deposited money from any of the bank's branches throughout the world. These applications now

also have the capability to address the needs of corporate customers, providing a comprehensive

banking solution. This modular solution addresses the core banking, consumer and corporate e-

banking, mobile banking and web based cash management requirements. Core banking solutions

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are leaving an indelible mark as banks embark on a total overhaul of their legacy platforms

(Kavitha, n.d.).

Information technology is becoming an important factor in the future development of

financial services industry, especially the banking industry. The banking sector is based on sharing

of information, which itself heavily relies on information and communication technology (ICT) in

order to acquire, analyze and deliver data to all relevant users. The ICT is crucial not only for

information analysis, but also enables the banking sector to differentiate its offer from competitors

and thereby make it a market leader. In this context, banking sector are obliged to continuously

innovate and update their marketing strategies in order to closely meet the demands and the

requirements of the individual customers. It also provides safe and confidential services which

best suit customers’ needs (Kavitha, n.d.).

Commercial or retail banks use what is known as core banking software which record and

manage the transactions made by the banks customers to their accounts. For example, it allows a

customer to go to any branch of the bank and do its banking from there. In essence, it frees the

customer from his home branch and enables him to do banking anywhere. Further, the bank's

databases can be connected to other channels such as ATMs, Internet Banking and SMS based

banking. Banking software is used by millions of users across hundreds or thousands of branches.

This means that the software must be managed on many machines even in a small bank. The core

banking system is a major investment for a retail banks and maintaining and managing the system

can represent a large part of the cost of running a bank (Kavitha, n.d.)

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1.2 Statement of the Problem.

Banks are continuously striving to expand their customer base and increase the customers

demand for their services, maintain and have a competitive edge over all other competitors in

providing greater value to their customers.

1.3 However, legacy systems are being used by banks in providing services to their

customers but these systems are not only unable to communicate or share data with one

another but also require frequent and costly maintenance. Due to the advancement in

technology, several core banking solution software has been developed that address these

limitations in the legacy systems but selecting the appropriate software and migration

technique is a challenge to banks. Identifying the core banking solution with best

functionalities that meets the need of the banks is a problem among banks.

1.4 Aim and objectives

The aim of this project work is to evaluate different softwares used in the banking sector

to provide value to their customers.

The project also has the following objectives;

1. To find out the strength and weaknesses of core banking solutions used in banks.

2. To find out the advantages of core banking solutions over legacy system used in the past.

3. To compare the functionalities of different core banking solutions.

4. To find out the areas that need improvement in the core banking solutions.

1.5 Research questions

1. What are the strength and weaknesses of core banking solutions used in banks.?

2. What are the have advantages of core banking solutions over legacy system used in the

past?

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 3. What are the differences and similarities in the functionalities of different core banking

solutions?

4. What areas need improvement in the core banking solutions?

1.6 Significance of Study

This research work is of utmost importance in the area of managing bank activities.

The following are the significance of this study;

1. The findings from this work will give proper insight to banks on the specific core banking

software that provides the appropriate functionality needed to manage their data and

provide greater value to their customers to be adopted.

2. This work will also give insight on the financial and time requirement that is needed to

migrate from the legacy system to the core banking software.

1.7 Scope of the Study

For the purpose of this research work, the scope of the study will be limited to information

provided by banks in University of Ilorin, Kwara State.

1.8 Operational definition of terms

Software: Software is considered to be collection of executable programming code, associated

libraries and documentations.

Core Banking: core banking is a general term used to describe the services provided by a group

of networked bank branches. Bank customers may access their funds and other simple transactions

from any of the member branch offices.

Core Banking Solutions: Core banking solutions are banking applications on a platform enabling

a phased, strategic approach that is intended to allow banks to improve operations, reduce costs,

and be prepared for growth.

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Core Banking System: Core banking system as a back-end system that processes daily banking

transactions, and posts updates to accounts and other financial records.

Legacy Systems: A legacy system is an old method, technology, computer system or application

program or being a previous or outdated computer system.

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 CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

This chapter reviews project work that have previously been done on the area of Core

banking softwares that are used by bank in the effective and efficient management of their

activities and in delivering services to their customers in order to gain competitive advantage and

secure larger customer base over their competitors.

2.2 Core Banking Systems

Hariharan (2015) has provided the following functional definition of Core Banking

Software. “Core Banking System is the software used to sustain banks, most common dealings

which include providing service loans, opening new accounts, cash deposit, and withdrawals,

account self-updating, calculating interests, client& service provider institutions relationship

management and maintenance action of records, information for the banks transactions and

interaction.”

Core banking systems arc basically the heart of all systems running in u bank und it forms

the core of the bank’s IT platform (Turnbull et al, 2007). Amongst other functionalities, it provides

the customer information management, central accounting and the transaction-processing

functions, which by far are the most fundamental processes in a bank. With the advancement in

technology and with passage of time, core systems nowadays tend to cover more and more

functionality giving the bank an integrated solution for most of its operations in different business

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lines. Alongside, it also provides a central operational database of customers’ assets and liabilities

giving facility to generate a 360-degree view of the customer’s relationship with the bank, which

is fundamental for the customer relationship management strategy of the bank (Kumba and Okolh,

2010). Core banking systems reside either in the heart of a bank’s data center or can be termed as

the heart of the data-center itself.

Zineldin (2009) classified core banking systems available in the market into five levels,

primarily on the basis of the functionality offered with level one being the most traditional system

offering basic functionality and level 5 being the latest state of the art systems with advanced

features. Systems have been classified on the basis of functionality available for addressing needs

of various business lines. Most systems from level 3 onwards can be classified as mature systems,

which offer a moderate spread of functionality required to run a medium sized bank efficiently.

Systems falling in level 4 and beyond can be classified as more advanced systems primarily aimed

at large banks operating in multiple business-lines and offering a large array of products and

services to its customers. These banks would typically be amongst the larger banks in the country

or die sector they operate in. the levels are presented in the figure below

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 Fig 2.1 Core Banking Software Levels. (Zineldin, 2009).

A core banking system is essentially the heart of all the systems operating in a bank. It can

be described as the core of a bank’s IT platform. With the advancement of technology, core

systems tend to cover more and more functionalities, providing the bank with an integrated

solution for most of its operations in varied business lines. A core banking system resides in the

heart of a bank’s data center and provides a central operational database of customers’ assets and

liabilities. It enables a 360-degree view of a customer’s relationship with the bank. (cognizant,

2013). Experience shows that there is a high failure rate of core banking system implementations.

We estimate that 25% of core banking system transformations fail without any results while 50%

do not achieve the transformation objectives costs and implementation times double or triple. Only

25% of the transformations can be called successful. (cognizant, 2013).

In February 2011, Irish Bank AIB sued Oracle over a failed €84 million implementation of

its Flexcube banking software. In July 2011, the Union Bank of California cancelled the

implementation of Infosys’ Finacle Solution almost two years after the program was initiated.

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 Devaraj, Fan and Kohli. (2002) have stated that the concept of CBS has helped banks

become one stop shops. For all the financial needs for retail and corporate customers by offering

multiple service under one roof. Customer can now access their accounts from any branch of their

bank irrespective of the branch the account was opened. CBS increases employee efficiency and

reduces human error and fraud.

Sachidanada and Sanat (2006) have illustrated Core banking system as the heart of all

systems running in a bank and it forms the Core of the bank's IT platform. Amongst other

functionalities, it provides the customer information management, central accounting and the

transaction-processing functions, which by far are the most fundamental processes in a bank.

Liao, Cheunq and Micheal (2008) have stated that the potential exists for internet banking

to become significantly more important increasingly technology-information based global

economy. Financial institutions must therefore deliver ever better service quality in their online

operations and products. Given that large number of service quality attributes can potentially affect

consumer attitudes towards internet banking.

Brand Korn (2009) has explained Core Banking as the correlation between the performance

of banks and the fact whether they have successfully implemented new core banking technology-

packaged core banking software. Barry (2010) has expressed that as regulatory demands grow in

intensity and financial institutions face a competitive and challenging environment, running a

modern and efficient core banking system has become essential to continued success.

Economic Times (2010) in Banking Technology Conclave found out that many banks have already

started implementing core banking systems and general ledger automation systems. Initiatives

such as internet based transaction banking, self-service kiosks, mobile banking are either underway

or are planned in near term.

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 Basin (2011) has viewed that the technology in banking can be represented in an S curve

as in the case of Product Life Cycle. This goes with the principal a) traditionally innovations move

very slowly in to the niche markets then mushroom. b) It typically takes the same amount of time

for a Product to reach 10 % acceptance as it does to reach 90 % acceptance and c) once the new

technology reaches 50% market penetration it starts to noticeably impact the economy and

productivity.

Subbarao (2009), Governor, RBI, has opined that information technologies and the

innovations they enable are strategic tools for enhancing the value of customer relationship. They

reduce the costs of financial transactions, improve the allocation of financial resources, and

increase the competitiveness and efficiency of financial institutions. Even as the achievements of

IT in the banking sector are impressive, we have a big agenda on the way forward.

Dr. Krishna A. Goyal and Vijay Joshi (2012) have illustrated in their study that Banking

industry in India has also achieved a new height with the changing times. The use of technology

has brought a revolution in the working style of the banks. Nevertheless, the fundamental aspects

of banking i.e. trust and the confidence of the people on the institution remain the same. The

majority of the banks are still successful in keeping with the confidence of the shareholders as well

as other stakeholders. However, with the changing dynamics of banking business brings new kind

of risk exposure.

2.3 Factors leading to Core banking system Replacement

The reasons for core system replacement vary by financial institution. There are seven key drivers,

according to Zineldin, (2009).

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 First, are phased-out vendor technologies. Vendor mergers often lead to overlaps in

technologies or acquisitions of more advanced solutions. Some vendors discontinue upgrades to

some products, leaving institutions unsure about the future of their existing solutions.

Second, are outdated technologies such as outmoded platforms and integration architectures that

don’t permit financial institutions to leverage advances in technology, such as web services.

Implementing newer, more efficient technologies with open architectures hastens transaction

speeds and speed to market with new products and capabilities (Ritter, 2003).

Third, is greater focus on business banking. Thin net interest margins and the increasingly

competitive retail space are causing greater focus on business services, with their greater potential

for cross-selling and fee-based income.

Fourth, is new member-centric strategies. As banks increasingly adopt member-centric strategies,

they need their core banking solutions to provide enterprise-wide member data.

Fifth, is cost reduction. Besides reducing complexity and speed to market with new products, some

institutions arc running multiple solutions simultaneously due to mergers and acquisitions, and are

paying multiple license and maintenance fees.

Sixth, is organic growth. New solutions enable financial institutions to launch new products

quickly without involving vendors for customization or altering sophisticated code. Seventh, is

better risk management and compliance. Regulators expect to see uniform and integrated

management of risk. data, and processes throughout an organization. This is often a daunting task

for older, less user-friendly core systems (Blanchard, 2008).

A core banking solution, once implemented, should be robust, scalable and future- proof

and serve the business interest for at least 10 years. Banks need to focus on key factors, which

make the core banking transformation a successful experience (Adamson, Chan, Hanford, 2003).

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2.4 Challenges of Core Banking Systems Replacement

Although the drivers for core banking system replacement are clear and compelling, such

initiatives present unique challenges and have long-term organizational implications. The first

challenge is overestimating the capability of software to meet requirements. Business users often

assess requirements fit by directly comparing how business needs arc supported today. This form

of assessment inevitably drives up the degree of customization and pushes out timetables. To avoid

falling into this trap, it is important to ask two key questions when assessing software capabilities.

First is to ask whether the existing business work is effectively based upon the software’s

structure and processes. Secondly is the question of whether the software will enable new ways of

working. resulting in additional value to the organization (Blanchard, 2008). Many organizations

believe the way they do things today is both unique and a major factor in the successful execution

of their business.

However, certain capabilities existing today do not mean they are required or are the only

way to do business in the future (Adamson et al. 2003). Therefore, reaching agreement within the

organization on what is actually necessary is difficult but essential. Core banking packages

available in the market today arc internally focused, but they have to be “wired into" the existing

mechanisms of the organization (Bogoslaw, 2009). Modem core banking packages expose their

services in different ways and to different degrees, and not always in structures that make sense to

a financial services organization.

Another challenge is overestimating the ability of the business to change (Adamson et al,

2003). Too often, organizations implementing a new core system do not consider the impact the

project will have on business processes early enough in the estimation, planning, and initiation

phases. They also underestimate the amount of communication required to achieve the necessary

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behavioral and attitudinal change across the organization and its extended network. Executive and

middle management can have conflicting viewpoints on a core banking initiative. Executives look

for significant benefits and capability, while middle management must deal with the difficulties of

realizing the benefits. Both views are important, but the interaction can create dysfunction and

pressure to change the program, potentially diminishing its impact and value to the organization.

Also, underestimating the complexity of legacy integration (Blanchard, 2008). Interaction between

a new core banking system und legacy applications will have interlinking impacts on the structure,

location, and maintenance of business information. It will affect business process steps and

organizational structures. Also, if the legacy environment is old. there will undoubtedly be gaps in

knowledge about the existing systems. Institutions may need to adjust their replacement programs

to align with shifts in the business environment. They will be challenged to adapt to the dynamics

of day-to-day business without continually restructuring the program.

Another challenge is underestimating the skills required (Rakesh, 2004). A broad spectrum

of skills is needed to meet the project commitments and unexpected issues of core system

replacement. Given the complexity and importance, core banking programs need access to some

of the best talent in the organization. These people often are already swamped by daily business

needs, financial institutions may bring in outside resources to help. Typically, these resources are

focused on product implementation and program management. It is critical, as well, for external

resources to participate in and adequately address the architecture, integration, and change

management dimensions of the project. It is therefore imperative that if a bank requires an effective

replacement of a core banking system, it should address these challenges above ensuring that

implementation is efficient and focused on objectives.

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 Core replacement involves a series of launches and migrations. The last thing any bank

would want is to build a new core that will make the bank look just like the old one (Adamson et

al, 2003). The bank should therefore launch the new capability, prove it works and then migrate

old to that. This way it will be building the new bank and taking the old one to it. Studies have

indicated that core banking system replacement is quite challenging.

2.5 Advantages of Core banking

2.5.1 Advantages of Core Banking to Customers

1. As multiple delivery channels are facilitated, internet banking, online access to all ATM

networks, tele-banking facility, bill payment facility are made available to the customers.

2. Customer becomes a true customer of the bank.

3. No need to visit the branch as the multiple delivery channels enables the customer to

transact basic banking even from the comfort of their home /office.

4. It enables the organizations, customer relationship management by providing a robust

operational customer database and customer administration. A customer no longer belongs

to a branch. He belongs to the bank.

5. By means of a simplified account administration, it provides improved customer service

and cost saving. It provides support for portfolio growth with a fast track product field

component. It is capable of creating flexible products providing the capability of building

products in line with prevailing market conditions.

6. Initially, core banking solution could be implemented with basic modules like savings bank

accounts, current accounts, fixed deposits, loans, cash credit etc.

7. It facilitates an increased productivity and reduction of errors.

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8. With online transactions being enabled and the server being active all the 24 hours and

seven days a week, it is possible to perform banking transaction on the net any time, any

day, anywhere.

9. It is capable of generating accounting and management information from operational data

for compliance, risk management and profit ability analysis.

10. It provides data structures to extend the core banking solution functionality to support

bank’s specific needs and reduce maintenance and upgrade costs (Kavitha, n.d.)

2.5.2 Advantages of Core Banking to Bank

1. Instant availability of consistent and accurate data.

2. MIS at a central location enhances the decision support for the top management.

3. Effective control and monitoring by the top management.

4. Data base and processing are centralized, leading to better monitoring of the business and

reduction in data cost and transaction cost.

5. Faster introduction of customer centric products from the central location ensuring

uniformity in implementation.

6. Introduction of new products /business changes can be implemented immediately.

7. New delivery channels could be integrated easily.

8. The need for reconciliation among the branches is eliminated thereby improving better

housekeeping and better operational risk management.

9. Ease of system administration and thereby reduction in support cost.

10. Information system security is ensured as the information processing facility is centralized.

11. Since the transactional as well as master data of all the branches is available at a centralized

location, it is easy to set up data-warehousing which provides a decision support system.

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 12. Critical nationwide payment system products introduced by regulators such as RTGS (Real

Time Gross Settlement System), NDS (Negotiated Dealing System), CFMS (Centralized

Funds Management Service), SFMS (Structured Financial Messaging Solution) etc are

implemented and integrated with core banking at the data center

13. As the back office work is diverted to the centralized location, more time is available to

the branch officials for activities like product promotion, marketing, business expansion

and cross selling of products.

14. Single window service for the varied needs of the customers is made available at the

branches thereby enhancing customer service at the branch.

15. There is a uniform approach to the branch rules / operations (Kavitha, n.d.).

2.6 Types of Core Banking Solution

Banking leaders understand that technology is critical for simplifying banking to create

sustainable business growth. But, many are burdened with disparate host systems added piecemeal,

over time, and developed on obsolete technology. These legacy systems are simply not equipped

to readily respond to change. However, bankers, having grown weary of lengthy deployments and

the ensuing business disruption, have apprehensions about transformation. Yet, the need to

modernize the organization remains as compelling as ever. A pain free approach to banking

transformation, with an adaptive solution at the core, will prove invaluable for banks looking to

gear themselves for tomorrow (Infosys, 2013).

2.6.1 Finacle core banking solution

Finacle core banking solution is a comprehensive, agile, componentized yet integrated

business solution, addressing all the core needs of banks, in easy-to configure modules. Finacle

provides all the building blocks of business functionality enabling users to configure products and

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processes flexibly in order to adapt to a dynamic environment. With a 360-degree single source

view into customer accounts, banks can empower customers with relevant information and delight

them with the right offerings, presented at the right time through the right channel

The solution’s componentized structure gives you unmatched agility to modernize at your

own pace progressively or an integrated manner to meet business priorities. The solution also

enables you to dynamically refresh your business model by adding or upgrading existing modules

and components selectively to reach out to new customer segments. This helps you realize

modernization benefits in months as against years. The solution’s readymade integration adaptors

and its compliance to industry standards reduce integration costs and further simplify your

transformation journey (Infosys, 2013).

Benefits of Finacle

Finacle has a layered Service-Oriented Architecture (SOA), STP capabilities, Web enabled

technology, and supports true 24 X 7 operations, so banks can;

1. Create a differentiated and unique customer experience: The Finacle core banking solution

enables banks to provide a hassle-free and unified banking experience to customers that’s

personalized to their needs.

2. Expand product offerings: With a robust and comprehensive core solution, banks can

expand product offerings on demand and stay ahead in a competitive marketplace.

Configure bundled product suites: The modular nature of our solution allows banks to

easily configure bundled product suites to cater to the growing demands of today’s

customers.

3. Offer differential pricing: This is not an option but a need for banks today and our solutions

gives banks the flexibility to offer differential pricing.

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 4. Generate right-sell opportunities: Finacle core banking solution enables a 360-degree view

of customer relationship to generate actionable insights for maximizing right-sell

opportunities.

5. Eliminate data redundancy: Our core banking solution helps banks build a master data

system that consolidates all customer and product data and eliminates redundancy.

6. Reduce costs: Our enterprise class components empower you to create central processing

hubs and eliminate duplicate functions & applications across business units.

7. Increase the productivity of frontline staff: Automation and ease-of-operation lends itself

to increase in productivity.

8. Comply with emerging global regulations: Compliance is every bank’s concern. With our

solution banks can rest assured of being compliant with growing regulations.

9. Manage growth with proven scalability: The solution is designed to be scalable and support

your pace of growth (Infosys, 2013).

First Bank of Nigeria Adopt Finacle.

With sophistication of customer Requirements and increased competition, the bank's

critical requirement was to not only to meet the existing demands of the customer but also to stay

agile and meet the changing requirements going forward with Accenture as consultants, FBN

embarked on a global search for a strategic IT partner who would enable them to make this

quantum leap.

An application selection model was developed, which involved looking at over 50 core banking

solutions from across the world. Eventually, Finacle, the universal banking solution from Infosys,

emerged as the clear winner. One of the pillars of Finacle's value proposition to FBN was its new

generation solution architecture, designed to help the bank build an agile business through

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innovative offerings to the market and a significantly superior speed of response to customer,

competitive and regulatory requirements. The other was Finacle's proven track record of 100%

successful implementations across the globe, which offered the bank the attractive proposition of

minimised risk. FBN piloted on Finacle in six months and since then has rolled out the solution to

over 170 branches, on time and within budget (Infosys, 2013).

2.6.2 Temenos core banking solution.

BlueShore Financial Adopts Temenos

BlueShore Financial needed new technology that would allow increased efficiencies in

terms of straight through processing and integrated data centralisation. It also needed a platform

that would allow them to launch more complex and functionally rich products, whilst ensuring

they could be easily catalogued and managed. BlueShore Financial needed to show a return on

investment while maintaining its goal of investing a percentage of its profits in local charitable,

community and civic organizations.

According to Fred Cook, CIO of BlueShore Financial, “BlueShore Financial needed a cost-

effective way to manage our infrastructure while still providing excellent member service and

innovative products.” While BlueShore Financial was making the most of its previous IT banking

system, it recognized that improvements to the infrastructure were required to help integrate the

large amounts of member data. The company outsources many of its services, and its database

administrators (DBAs) were faced with the daunting task of managing and tracking multiple

interfaces and data feeds. To help gain a clear picture of pertinent customer information,

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integrating all this data became a priority in order to deliver more customized and targeted

customer service (Temenos, 2013).

After a thorough evaluation process, BlueShore Financial chose to work with Temenos and

other partners to deliver a new core banking solution based on Microsoft SQL Server. Temenos is

a global provider of banking systems, serving more than 700 customers in over 120 countries. By

leveraging SQL Server 2008 with the T24 system, BlueShore Financial developed a more cost-

effective and high-performance environment, with access to a wide range of Microsoft-based tools

and the advanced features of the Temenos solution. The integration project started in 2007 and

was completed in 2009. Along with Temenos and Microsoft, other partners included Hewlett

Packard, Sierra Systems and Validata. BlueShore Financial also integrated the Syntellect

Communications Portal (SCP) to provide enhanced call centre capabilities and more automated

self-service banking for its members. The SQL Server-T24 platform supports all retail banking

products, including general banking, savings and lending products. It also supports all of

BlueShore Financial’s delivery channels – branch, phone, Internet, ATM/POS and e-Bill

(Temenos, 2013).

2.6.3 FinCORE core banking solution

FinCORE is a complete browser based / web based solution, yet modular business solution

geared to resolving the challenges faced by Banks on a day to day basis. The diverse functionality

of the products encourages banks to constantly innovate and handle competition, compliance and

customer demands fully.

FinCORE offers several fully integrated modules for ready utilization on a bank-specific

basis. It is a comprehensive end-to- end core banking solution assisting in a wide range of banking

operations, highly scalable and capable of handling large volumes of transactions. FinCORE is a

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highly flexible solution for retail and corporate banking institutions and can easily integrate with

third party products for functionality. Each Application Module in the Core Banking Solution has

a set of application-specific parameters that can be easily modified and personalized for the

development of new products. (Finacus solutions, 2012). Designed keeping in mind the extensive

requirements of the financial services industry, FinCORE is built to deliver in time and with the

prevalent best-practices in the industry. FinCORE offers banks a truly browser based / web based

solution with the opportunity to meet present challenges with reduced costs and enhanced customer

management measures. Information management and Risk Management is the key.

Benefits of FinCORE

FinCORE provides a comprehensive approach to security at all levels within the system, controlled

centrally across the bank, assuring the Bank that it has a cutting-edge solution at its disposal which

can grow with the needs of the bank. Some key points include: -

1. Inherent protection and checks: these involve passwords and identity management systems.

Additional role based security (ACL) is also used. FinCORE uses passwords, identities and

role based security for all of the system effectively.

2. Application monitoring functions by monitoring actions, events during the course of the

application, giving additional security. FinCORE has an audit trail which allows the

administrator to trace back each and every action/transaction that flows through the system.

(Finacus solutions, 2012).

Core Banking Softwares in Nigeria.

23
 The choice of core banking software is not trivial and a wrong move can spell disaster.

Banks are usually very conservative about who and what to choose; hardly do you see mavericks

in this line of business (Olowe, 2016).

Banks Website Software

Access Bank www.accessbankplc.com FLEXCUBE

Citibank www.citigroup.com/nigeria FLEXCUBE

Diamond Bank www.diamondbank.com FLEXCUBE

Ecobank www.ecobank.com FLEXCUBE

Fidelity Bank www.fidelitybank.ng Finacle 7

First Bank of Nigeria www.firstbanknigeria.com Finacle 10

FCMB www.firstcitygroup.com Finacle 10

Guaranty Trust Bank www.gtbank.com Basis

Heritage Bank www.hbng.com/ Finacle 10

Keystone www.keystonebankng.com/ T24

Skye Bank www.skyebankng.com FLEXCUBE

Stanbic IBTC Bank www.stanbicibtcbank.com Finacle 10

Standard Chartered Bank www.standardchartered.com/ng eBBS

Sterling Bank www.sterlingbankng.com Banks

24
Union Bank www.unionbankng.com FLEXCUBE

United Bank for Africa www.ubagroup.com Finacle 10

Unity Bank www.unitybankng.com Banks

Wema Bank www.wemabank.com Finacle 10

Zenith Bank www.zenithbank.com Phoenix

The software Lineup

In 2011 Now 2016

Finacle – 7 (29%) Finacle – 7 (37%)

FLEXCUBE – 7 (29%) FLEXCUBE – 6 (32%)

Globus/T24 – 4 (17%) Basis/Banks – 3 (16%)

Basis/Banks – 3 (13%) T24 – 1 (5%)

eBBS – 1(4%) eBBS 1 (5%)

Equinox – 1 (4%) Phoenix – 1 (5%)

Phoenix – 1 (4%). (Olowe, 2016).

25
 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction

This chapter describes the methodology that will be used by the researcher to obtain the

needed data for this research work. The methodology describes the population of the study, the

sample size, sources of the data, data collection technique and the method of data analysis. The

methodology section of a research paper answers two main questions: How was the data collected

or generated? And, how was it analyzed? Research methodology is a way to find out the result of

a given problem on a specific matter or problem.

3.2 Research design

Parahoo (1997) describe a research design as a plan that describe how, when and where data

are to be collected and analyzed. The objective of this study is to evaluate the core banking solution

softwares that are being used in banks. For the purpose of this study, the research paradigm that

26
was followed is of qualitative nature, using semi-structured interview to obtain the relevant and

needed information from different banks in University of Ilorin. Leedy (1993) explains that

qualitative research is based on the belief that firsthand experience provides the most meaningful

data. It is also believed that qualitative data gives large volume of quality data from a limited

number of people.

3.3 Population of Study

This is the group of individuals in a study. For the purpose of this study, a total of seven 7

banks in University of Ilorin is the population where the needed data were obtained from.

3.4 Sample Size

This is the number of subjects included in a sample. In this research work, the data was

obtained from all the Banks with University of Ilorin, which are:

 Guaranty Trust Bank (GTB).

 First bank.

 Zenith bank.

 Union bank.

 United bank for Africa (UBA).

 Skye bank.

 Microfinance bank.

3.5 Sources of the Data

The research work made use of only primary data in the study. Primary data are used to

obtain firsthand information. The major instrument used to obtain primary data are

27
 questionnaire and interview, this research work obtained its primary data through the use of

personal semi-structured interview.

3.6 Data Collection Technique

These are practically the methods of acquiring information from the field about the subject of

interest from the different available sources. To enable the collection of data and analysis, the

researcher needs various types of instrument specifically designed for multi-various purposes. For

the purpose of these research work, semi-structured Interview method was employed for the

collection of data which is done in person. The main advantage of personal interview is that they

involve personal and direct contact between interviewer and interviewees, as well as eliminate

non-response rates.

3.7 Method of data Analysis

Data analysis is the process of systematically applying statistical and or logical techniques to

describe and illustrate, condense and recap, and evaluate data. Thematic analysis was used for the

data analysis in this research work. Thematic analysis is a method for identifying, analysing, and

reporting patterns (themes) within data. It minimally organises and describes your data set in (rich)

detail. However, it also often goes further than this, and interprets various aspects of the research

topic (Boyatzis, 1998).

3.8 Ethical Consideration

During the course of this research, participation in the interview will be made voluntary, the

respondents are not forced to release information. And for those who willingly gave their

information out, the information obtained from them are kept confidential and not further used

28
except for the purpose the respondents were informed of before the collection process. This

research work avoid falsification, fabrication and misinterpretation of data.

3.9 Interview guide

An in – depth semi-structured interview which allows for direct questioning and grants the

researcher some flexibility in the way the questions are worded is considered the appropriate data

collection method for this research work. This method also allow the researcher probe the

participant for additional information and clarification where necessary.

CHAPTER FOUR

PRESENTATION OF RESULTS AND DISCUSSION OF FINDINGS

4.1 Introduction

This section focuses on the presentation, interpretation and discussion of findings from the

data gathered. A total of 5 respondents from 5 banks provided the responses from the targeted 7

banks in University of Ilorin which constitute 71.4% response rate for the interview. The

information gathered from the interview have been analyzed using thematic analysis of the

respondent’s responses.

4.2 Presentation of result

4.2.1 The core banking solution software currently in use

The interview carried out shows that the banks use different softwares except for two (2)

of the banks that use the same software but different versions. Three of the banks used different

software, Union bank use FCUBS, Skye bank use Flexcube, Microfinance bank use Bank 1.

29
However, the two other banks use the same software but different versions, First bank use Finacle

10 and UBA use finacle 10C. The common theme that was revealed in the response of each

respondent during the interview was;

“We are presently using.”

4.2.2 The extent to which the core banking solution software meet the daily operational need

of the bank.

In determining the extent to which the Core banking software meet the daily operational

need of the bank, the information obtained during the interview session shows that the core banking

solution software used in all of this bank meet their daily need to a very large extent as this is

supported by all the respondents of each bank. The common theme that was revealed by the

respondent of union bank is that;

“To a significant extent. It’s a core application, it houses customer data and process

customer request, it’s been stored on the application every other application used are

transferred to this application and it’s very efficient”.

The response from the respondents of other banks are closely related to this and as such

supported this response.

4.2.3 Migration from a core banking solution software to another as a result of some

limitations/situations or to follow the technological trend

Based on the aspect of migration from a core banking solution software to another, it was

revealed in this study from the response that was provided by the respondent of First bank, Union

bank, Skye bank and UBA bank that they have not migrated from one core banking software to

30
another either as a result of a situation/limitation or to follow the technological trend. However, a

common theme was noted here, three (3) of the banks mentioned that;

“We only upgrade/update from a software version to a higher available version”

The last of the bank which is the Microfinance gave the response that they were previously using

a software called “Bank mate” but migrated to another Core software called “Bank 1”. The

migration was as a need for a software that provides real-time online connectivity with low

bandwidth internet and robust to process large number of users’ transaction.

4.2.4 The need for you to go for another new banking software or going back to a previous

software

During the course of the interview, it was mentioned by the respondent of First bank, Union bank

and Skye bank that there is no need for them to go for a new banking software or go back to a

previous software, the respondent from Skye bank quoted that;

“flexcube happens to be one of the best software in the industry

because ever since, it has been competing with the likes of finacle”.

Also, it was noted from the response given by the interviewee from First bank that they only

upgrade/update like they did from Finacle 6 to 7 then 10, he stated that;

“Finacle 10 as said earlier is robust, expandable that we can’t use all

the functions that even in the future we won’t need any improvement.”

It was found in this study that banks still need some changes in their core banking solution software

as the world changes and technology advances every day. Respondent from UBA and Unilorin

Microfinance bank believed that the world is always changing and there is always advancement in

technology and as such in the development of a new software with higher functionalities can bring

about migration. UBA respondent said that;

31
 “It’s a changing world, there are still some changes needed.”

Also, the respondent from Unilorin Microfinance bank stated that,

“We need to migrate but not go back to the legacy system”.

4.2.5 Failure experienced that leads to inability to effectively carryout the daily services

Responses from the interview session revealed from First bank, Union bank, UBA that

there has not being any form of failure whatsoever since they have been using their core

banking software. The respondent from this banks stated that;

“There has been no form of operational failure since we have been using this software.”

The respondent from Skye bank said that there has been an operational failure in their core

banking software. He responded that;

“Yes, at the initial stage when we crossed over to version 10 in 2014 we had a little

challenge, you know upgrading to a new version, the implementation process at the initial

stage was not perfect”.

He further mentioned that the failure was not due to the skills of the staff not being efficient but

due to the introductory process that was new to everybody.

Also, the respondent from Unilorin Microfinance bank also revealed that there has been a failure.

He explained that;

“Ofcourse there has been, it was as a result of network issue”.

4.2.6 Present core banking solution software being more effective and efficient than the

legacy systems

32
This study revealed that the present core banking solution software are more effective and efficient

than the legacy systems. All of the interviewed respondents from each of the banks unanimously

agreed that the present software is more efficient and effective. This was revealed in a response

made by the respondent from First bank that;

“Of course, a more revised software tends to improve in functionality compared to the

legacy system.”

This response was supported by all other respondents from the banks that took part in the

interview session.

4.2.7 Areas of the present core banking solution software that needs improvement

Findings revealed some areas of the different softwares used by different banks that needs

improvement. Some of the banks were of the opinion that no areas of the core banking software

they are using needs improvement, while other banks identifed some parts that needs improvement.

Respondent from First bank and Union bank revealed that there is no area of the software they are

running that needs improvement, the respondent form First bank stated that:

“For the core banking solution software we are currently running, there is

no need for improvement as it performs all what we need it to do”.

However, respondent from Skye bank, UBA bank and Unilorin Microfinance bank revealed that

there are still some areas of their banking software that needs improvement. Respondent from

UBA bank revealed that;

“The signature verification menu area needs improvement, it takes a very long time

33
 to load.”

Also, the respondent from Unilorin Microfinance bank revealed that;

“E-payment service area needs improvement.”

4.2.8 Provision to recover from software failure so as not to affect the value of service

On the aspect of provision to recover from failure so as not to affect the bank services, some

respondents don’t know the appropriate alternative to recover from software failure or

breakdown. Respondents from First bank and Union bank stayed that;

“That’s a strategic management decision”.

On the other hand, the respondent from Skye bank stated that;

“We have a backup called skyplus that’s another software you can easily use, when

the flexcube is down we use skyplus as an alternative to keep the daily operation

going on”.

In addition, the respondent from UBA also revealed that;

“there is a support system that is used in the case of any form of failure so as not

to disrupt the bank daily operations.”

4.2.9 The maintenance cost of the banking software

The maintenance cost of the core banking softwares are reasonable and effective. The respondents

from First bank, Skye bank, UBA, Unilorin Microfinance bank all supported this claim, the

respondent from Skye bank noted that;

34
 “The cost maintenance is reasonable and very cost effective”.

In addition, the interview conducted also revealed the response that was given by the respondent

of Union bank who could not categorically say if the maintenance cost is reasonable or not. He

stated that;

“This can be answered at the head office, not here in Kwara State but in Lagos State”.

4.2.10 Need to develop a more powerful software to replace the present core banking solution

software with IT advancement

Findings revealed that there is a need to develop a more powerful software to replace the present

core banking software as IT advances. This was supported by the respondents from First bank,

Skye bank, UBA and Unilorin Microfinance bank.

However, the respondent from Union bank doesn’t think there is a need for another software, he

noted that;

“The current software is meeting our needs; I don’t think there is a need to

develop another software yet.”

4.2.11 The skills and knowledge to adapt quickly to the use of a new system in the case of

software replacement

35
The responses from all the participant shows that the banks have skilled workers who have the

knowledge to adapt to a new system. The common theme that was revealed in the response of the

respondents is;

“Piloting”

Respondent from First bank and UBA revealed that before the staff are allowed to use a new

system for their operational activities, they are taken through a kind of test called “piloting” before

rolling out a new software.

4.3 Research Questions

4.3.1 The strength and weaknesses of core banking solutions used in banks

This study revealed the strength and weakness of the core banking solutions that are used in banks.

In the data that was collected through the interview process, it was revealed that the core banking

system meets the operational need of the banks to a large extent. The common theme from the

responses was to a large extent/significant extent. This claim was supported by all of the

respondent that was involved in the interview session.

However, there has been some form of weakness that has been revealed from the responses

that was obtained from the interview conducted, some respondent identified some issues that have

aroused from using the core banking software which act as weaknesses of the software.

The respondent of Skye bank used the theme failure to describe the weakness of the core banking

software. The respondent stated that;

Yes, at the initial stage when we crossed over to version 10 in 2014 we had a little challenge, you

know upgrading to a new version, the implementation process at the initial stage was not perfect.

36
The strength of the core banking software solution supersedes the weakness offered by this

softwares.

4.3.2 The advantages of core banking solutions over legacy system used in the past

From the information that was obtained through the interview conducted, the theme that was

revealed that shows the advantage of the core banking system over the legacy system is

“effective/efficient”. There are several versions of the core banking software available for the

banks to use, the banks want to upgrade their software rather than to go back, an advantage of the

core banking software solution can be seen in a response given by the respondent of First bank.

He said that of course, a more revised software tends to improve in functionality compared to a

legacy system. The responses that was given by all the five banks that was interviewed to the

question “Do you think the present core banking solution software are more effective and efficient

than the legacy systems?” complement the advantages of the core banking solution software over

the legacy softwares as all the responses gotten from each respondents were positive (Yes).

4.3.3 The areas that need improvement in the core banking solutions

With the response from the respondents, there are areas in the core banking solution software that

needs improvement. The common theme in the response of the respondent is “need”. Some of the

respondents noted that there are areas that needs improvement. The respondents from Skye bank,

UBA bank, and Unilorin Microfinance bank noted that there are still some improvements needed

in some areas. Such areas include the signature verification menu area and e-payment service area

needs improvement among others.

4.4 Discussion of Findings

37
 Based on the demographic information that was obtained from the respondent of each bank,

the study found out that most of all the banks are running a different software except for First bank

and UBA that are running the same core banking software but to note the are running a different

version of the software. The study found that most of this core banking software meets the need

of the bank that is running to a large and significant extent that some of the banks don’t even think

there is a need to replace the software with a new core banking software not now or even in the

nearest future. This was found in a statement that was made by the respondent of First bank where

he said Finacle 10 as said earlier is robust, expandable that we can’t use all the functions that even

in the future we won’t need any improvement. This is consistent with the result that was discovered

by Cognizant(2013). Therefore, on the basis of this result it can be concluded that core banking

solutions have a high functionality.

On the area of migration from a core banking solution software to another as a result of

some limitations/situations or to follow the technological trend, it was discovered from the

interview session that was held with the respondent that many of them have not migrated from a

software to another before, all that they did was to update/upgrade from a lower version to a higher

available version that provides more functionalities and performance than the current version of

their software provides to them. However, it was also discovered that the respondent from Unilorin

Microfinance noted that they have migrated from a core banking software to another.

On the area of need for going for another core banking software or going back to a previous

software, it was noted from the responses of the some of the respondent that they don’t have any

need whatsoever for migrating to another software, as noted from the respondent of First bank it

can be concluded that a maximum satisfaction is derived from the Core banking software they are

using that they don’t think the will be needing any improvement not even in the future. This is in

38
contrary to results from research made by Adamson et al.(2003). This implies that though the

software is meeting their needs today doesn’t mean they will meet the bank requirement in the

future. There other banks revealed that there are still some areas that needs improvement in the

system, the advancement in the technology and the changing of the world was a basis for this

response as noted from the respondent of UBA.

On the level of failure of this core banking software, it was revealed in this study based on

the response that was gotten from many of the respondent that the core banking software that is

being used by each of them has no form of failure as this softwares are very robust and complex

to meet the operational needs of the banks. This is in contrary to Cognizant(2013) who found that

there is high failure rate of core banking software implementation Although, some of this banks a

noted that there is some form of failure is one or two area of this software but it was also mentioned

that this failure is not as a result of lack of skill of the workers, one of the respondent mentioned

that the failure was due to the introductory process that the implementation process at the initial

stage of the software was not perfect and another respondent mentioned that this failure was as a

result of network issue.

On area of core banking software that needs improvement two respondent from two

different banks reveal the area that needs improvement in the software they are running, the

respondent of UBA made it known that “The signature verification menu area needs improvement,

it takes a very longer time to load” and also the respondent of the Unilorin Microfinance bank

revealed that the area of “E-payment service area needs improvement” needs improvement in their

core banking software respectively. Moreover, the respondent of Skye bank also mentioned the

needs for improvement of the software but no specific point was mentioned. The other respondents

don’t think there is an area that needs improvement in their Core banking software. This is in

39
contrary with the result from a research conducted by Sachidanada and Sanat(2006). This implies

that, Core banking solution software amongst other functionalities provides the customer

information management, central accounting and the transaction-processing functions, which by

far are the most fundamental processes in a bank.

On the aspect of provision for recovery from breakdown/failure of the softwares, it was

revealed in this study conducted that Skye bank and UBA as an appropriate alternative software

they use in the case of a failure. It was also found in the response given by the interviewees during

the course of this study that in the case of a breakdown, the management of the bank will be in the

right position to make the appropriate decision on how to overcome and solve this failure so as not

to disrupt the daily operational activities of the bank.

During the course of this study, it was revealed response made by majority of the

respondents from each bank that the cost of maintaining the core banking software is very

reasonable and cost effective. Also, in the case of replacement of the core banking solution

software, it was found in this study that the banks don’t just rollout a new software or updated

software for the staffs to use immediately after the replacement or upgrading/updating of the

softwares. It was made known that the staffs are taking through a training called “piloting” so as

to enlighten them on the use of this software before the software is rolled out for use by the

workers. This is in consistent with the result from research carried out by Rakesh(2004). On the

basis of this result, it can be concluded that staffs are equipped with adequate skills before using a

new core banking solution software.

40
 CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Introduction

This chapter of this research work gives an overview or summary of the whole research

work from the first chapter to the last chapter. This chapter also examines the findings as

41
discovered by the researcher, the conclusion of the research work and recommendations by the

researcher.

The purpose of this study is to evaluate the core banking solution software that are being

used by banks in University of Ilorin.

5.2 Summary of the Research

This research was carried out to achieve the following objectives:

To find out the strength and weaknesses of core banking solution software used in banks.

To find out the advantages of core banking solutions over legacy system used in the past.

To compare the functionalities of different core banking solutions.

To find out the areas that need improvement in the core banking solutions.

This methodology used was a qualitative research and an oral interview was conducted for

the purpose of obtaining information about the core banking solution that is used in each bank by

the researcher from the respondent from each bank.

The aforementioned variables were emphasized in the literature review section to provide

a clearer understanding as regards the measurability and relations to their respective constructs.

The works of scholars were reviewed to provide more depth to the understanding of the chosen

topic. The literature review section examined conceptual frameworks of the constructs.

5.2.1 Summary of findings

The following are the findings that emanated from this study:

1. Most of the softwares used in each of the banks was different except for UBA and First

bank that make use of the same software (Finacle) but different versions.

42
 2. The banks don’t replace their core banking solution software with an entirely new or

different software they rather upgrade/update the software to a more recent, effective and

efficient version.

3. The study found out that in terms of maintaining the core banking solution software, the

cost of maintenance is very reasonable and need for maintenance is a decision made at the

head office by the IT department.

4. Some of the banks belief there is no area that needs improvement in the software they are

running as it meets all their needs and carryout whatever they ask it to do effectively and

effectively, and some belief IT keeps on changing every day and as it does there are some

areas that will need to be improved.

5. The study also found that the staffs of the banks undergo piloting (piloting is test running

the software before use) after an update/upgrade of a software before the software is being

rolled out for use so as to test the skills of the staff and enlighten them on the function and

use of the software.

6. The study also found that only few of this banks have a standard provision for recovering

from failures in the case of any breakdown or inability of the software to carry out the daily

operations.

5.4 Conclusion

Based on the findings of this research work, it can be concluded that the software that is used

in each banks is different except for UBA and First bank that make use of the same software

(Finacle). However, despite the difference in this software functionalities, each banks belief they

are using the right software needed for their operation, they don’t want to change their software

43
but upgrade it to a higher version when the IT department or Top management observe that there

is a need for an upgrade. Also, the cost of maintaining this software is very reasonable, effective

and cost efficient.

5.5 Recommendations

Based on the findings of the study, the following recommendations are made

1. The bank management should adopt and provide a good backup and recovery measure so that

in the case of failure of the software, this won’t lead to the inability of the organization to carry

out their daily operation, deliver adequate value/service to their customers, or loss of customer

record

2. Before migrating, updating/upgrading the core banking solution software, a full exploration of

the new software functionality, performance capability, effectiveness, and efficiency should

be done to determine if the software can deliver more than the current software is delivering

and how this new software can address the loop or limitations in the current software you are

running.

3. The bank management should adopt the use of a custom made software where they can specify

their requirement to the software developer rather than a readymade software in which the

software developer build based on his own identified requirement.

4. A core banking solution software with a high maintenance cost will is not ideal for a bank,

before a software is being selected and deployed the cost of maintaining the software should

be very reasonable and cost effective, therefore, banks should carefully review their chosen

software to determine it capabilities and how reasonable the maintenance cost is.

5.6 Problems encountered

Few problems arose during data collection which includes:

44
 1. The most serious of these problems was the refusal of some of the banks in conducting the

interview regarding the needed information as a sensitive information that should not be

disclosed to an external body.

2. The failure to obtain recordings of the interview process due to reluctant by the respondent.

3. Lack of adequate information.

5.7 Suggestions for future research

This research work focused on evaluation of core banking solution software used in banks

in University of Ilorin based on the information provided by the banks through an oral interview.

The researcher suggests that further research in this area should extend this focus by including

other banks which are not in University of Ilorin and a practical test of this softwares should be

adopted.

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banking industry. The TQM magazine. 17. P. 329-34.

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 APPENDIX (Interview question)
1. Can you tell me the core banking solution software your bank is currently running?

2. To what extent do you think this core banking solution software meet the daily operational

needs?

3. Have you migrated from a core banking solution software to another as a result of some

limitations/situations or to follow the technological trend?

4. Do you think there is a need for you to go for another new banking software or demoting back

to a previous software?

5. Have you experienced any format of failure that leads to your inability to effectively carryout

the daily services?

6. Do you think the present core banking solution software are more effective and efficient than

the legacy systems?

7. What areas of the present core banking software needs improvement?

8. As machines are prone to breakdown, how do you intend or what provision do you have to

recover from this failure so as not to affect the value of your service?

9. Is the maintenance cost of the this banking software reasonable?

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10. With the ever growing IT advancement, do you think there is a need to develop a more powerful

system to replace the present core banking solution software? 11. In the

case of replacement, do you think the workers have the skills and knowledge to adapt quickly to

the use of a new system.

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