• Finastra Phoenix: Finastra’s Phoenix core banking system has a long history that’s seen many rebirths. The original Phoenix system was acquired by Harland Financial Solutions from Fair Issac Corporation in 2004. It was re-released in 2009 as PhoenixEFE after a two-year development effort. After that, Hartland Financial Solutions was acquired by D+H, which was later acquired by Vista Equity Partners and merged with Misys to create Finastra in 2017. The current Fusion Phoenix system is built on Microsoft (cloud deployments are on Azure) and offers integrated data capabilities and a large library of open APIs.
  
  
• FIS Profile: The Profile core banking system was developed by Sanchez Computer Associates, which was acquired by FIS in 2004. It is a real-time system that supports high transaction volumes and counts some of the largest banks globally as customers. It was also an early adopter of the Linux operating system for core banking. Today, it offers private and public cloud deployment options, including AWS and Azure, and is marketed as, “an integrated solution [that] contains a multitude of configurable features designed to meet the unique business and product needs of retail and commercial financial organizations worldwide.”
  
  
• Fiserv DNA: The origins of the DNA core system date back to Open Solutions, founded in 1992. Open Solutions initially offered two separate products, the Complete Credit Union Solution and the Complete Banking Solution, which were combined and re-launched as DNA in 2008. Open Solutions was acquired by Fiserv in 2013. Today, the system is known for its 24/7 real-time processing capabilities, integrations via the DNAappstore, and relationship-driven data model.
  
  
• Infosys Finacle: India-based Infosys launched Finacle in 1999 and entered the US with its first two core clients in 2014. In the years that followed its US launch, the system underwent a number of major changes, and it is now positioned as a real-time, cloud-first platform. It is built on an open, microservices-based architecture and offers flexible integration via Finacle API Connect.
  
  

What to look for in second generation core banking systems

Second generation core banking systems represent modern approaches to core development with historical context. A second generation system should offer an array of integrated capabilities developed or added over time.  

• Real time: System is available 24/7/365, with no batch windows.
  
  
• On-premise or hosted deployment: Support for on-premise deployment but also private/public cloud hosting.
  
  
• API ready: Offers an API library, ideally using modern, RESTful APIs.
  
  
• Turnkey functionality: Out-of-the-box functionality that requires little to no customization.
  
  
• Cost-effectiveness: Baseline modern functionality at a lower cost than third generation systems; no/low infrastructure investment.
  
  
• Vendor support: Deep vendor support, from development to service needs.
  
  

Each generation of core banking system offers its own unique strengths and tradeoffs, as does each system within each generation. As a bank contemplates its options, a clear understanding of its requirements and how those requirements align with its overall strategy are key to mapping the right attributes to the bank’s needs.