A Fuzzy Analytic Network Process (FANP) Approach for the Selection of Core Banking Solutions

Abstract

the selection of a CORE Banking System to drive a bank is very central and must be a carefully planned process. With several core banking systems available to choose from, it is important that managers and decision makers consider key features and prevailing factors that matter in the selection process. A fuzzy analytic network process (FANP) was adopted for the purpose of the research, to first identify the most important core banking solution selection criteria and to highlight key selection variables by rank. The key selection variables considered for this paper were Cost, Promotion, Interoperability, Security and Maintenance as selection criteria which influences banks when opting for a core banking solution. The results presented in the study allude to Cost, Security, and Interoperability as being the top 3 selection criteria for banking institutions when choosing core banking solution platforms. Moreover, the most relevant 5 sub-factors in the selection criteria were Cost of ownership, Fraud detection, ROI, Fraud prediction and 3rd party interfacing, respectively.