Almost half of European banks are using off-the-shelf enterprise resource planning packages, according to researchers from the European Business School at Germany's International University.
Around 60% of banks will move to off-the-shelf solutions from companies such as Oracle, SAP and PeopleSoft over the next five years.
Other important factors included an open operating environment and technical and functional upgrades, according to the SAP-sponsored research.
Researchers studied the ERP systems at 115 European banks and found that interoperability was a key driver in the shift to off-the-shelf solutions.
For those banks that preferred a custom-built solution, the main factors were flexibility in meeting requirements, independence from suppliers, and sustaining competitive advantage.
When choosing an ERP system, banks saw functions, usability, and supplier reputation as the most important general criteria for selecting ERP software.
Important product-specific features included analytical functionality as well as workflow and document management.
However, features for regulatory or legal compliance, specifically Basel II and IAS, played no significant role in an ERP software investment decision.