Core processing platform replacements among credit unions and banks alike should continue a slight uptick in the next few years, according to the Aite Group.
The Boston-based research firm said it already has seen an increase in deployments of new platforms in recent months by banks of between $3 billion and $10 billion in assets and among credit unions of $1 billion or more.
“Many institutions are left with little choice but to replace their core systems as they move forward with planned initiatives,” Aite Group said in a new report on core vendors.
The firm's analysts predict an increase of approximately 6% in core system replacements overall during the next few years. Aite researchers said a survey of 100 community banks and 83 credit unions found that 30% of the responding credit unions and 10% of the community banks are likely to replace their core systems over the next two years.
Aite Group expects 503 core replacement contracts to be signed by banks and credit unions in 2016, up from 399 this year.
Here is a projected breakdown of 2012 core contracts by deployment environment.