Embracing change at the heart of banking

Modernize your core banking systems with cloud, data, and AI to minimize risk, enhance efficiency, and deliver experiences that turn into business value.

Why core banking transformation?

A modern, cloud-enabled core is essential for growth and new capabilities, but banks often struggle due to the constraints of their legacy technology. By upgrading to modern platforms, you can innovate new products, adopt new business models, reduce legacy operational risks, and react faster to the changing environment.

5–10 pts

potential improvement in cost-to-income ratio can be achieved by banks that transform their core banking systems.

75%

reduction in time to market that banks can achieve for new products by transforming their core banking systems.

70%

of banks are either analyzing how to modernize or have started modernizing their core banking systems and are exploring the potential of next-generation core banking platforms.

Core modernization with AI and cloud technologies

Macroeconomic forces, competitive shifts, and tech improvements have created a strong business case for banks to transform their core systems. With the means and motivation, banks are looking to invest in interoperability frameworks with decoupled engines; based on cloud, data, and AI; and in productive relationships with industry and technology players.

Core banking modernization is an obvious necessity when viewed holistically. But first start by clearly defining the risks and impacts to create compelling reasons for change. Enhance internal awareness by promoting transparency and collaboration on the identified risks and the benefits of modernization.

A successful core modernization must first consider the strategic IT target state (beyond core banking) to guide a gradual transformation roadmap towards the north star. This approach reduces risks, balances investments, and ensures timely business outcomes.

Interoperability and composability are key for organizations to evolve with the market, thanks to high modularity and readiness for change across business and IT. Interoperable architectures enable a hybrid core where legacy and next-gen core systems work seamlessly together and with other systems, de-risking the transformation program and ensuring a fit for purpose approach.

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Generative AI offers banks an exciting opportunity to replace their complex legacy COBOL code with simpler, more flexible programs that support their modernization strategy.

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A modern core requires new skills and a deeper understanding of technology, change management, communication and partnering for rapid results. Ensure you have access to the skilled resources who will equip you to generate value in the future.

What you’ll achieve

Efficiencies and reduced operational risks

Raise efficiency and productivity across all layers by adopting modern technologies to support your digital transformation—including exploring AI—and reduce organizational risks.

Innovative new products and business models

React faster to the changing environment. Increase your flexibility to test new operating models, business strategies and products, supporting competitiveness and growth.

Valuable results

Modern cloud-enabled core banking solutions offer faster time to market, improved levels of automation and scalability and lower total cost of infrastructure ownership.