The banking sector is experiencing massive disruptions from challenger banks, evolving regulations, dynamic customer demands, and the emergence of Fintechs. For established banks to survive, let alone thrive, they must be flexible enough to integrate new digital financial tools and adapt to rapid change.

As outlined in our first whitepaper, “Core Banking Platforms of the Future”, modern core banking platform solutions not only liberate established banks from substantial financial liabilities and technological debt but also open the door to new digital business opportunities. Our focus in this whitepaper shifts to the strategic aspects of modernizing a core banking platform.

Experience shows the importance of holistic strategic planning in core banking transformations. A successful journey, especially a seamless integration into existing processes, starts with aligning the business value of a modern core banking platform with the bank’s business strategy.

Strategic planning cycle

Based on our experience modernizing core banking platforms in various financial institutions, we developed a practical strategic planning cycle containing four phases:

  1. Initial strategy alignment
  2. Develop and prioritize design principles
  3. Implementation
  4. Strategy readjustment

The cycle structures the strategic planning for executives and progresses from initial alignment to unique design principles for navigating implementation. Concurrently it allows for iterative strategic readjustments in response to dynamic stakeholder needs. For details on the individual phases, read the whitepaper "Core Banking Platform Modernization Strategy".

Migration strategy: Big Bang or phased?

Core banking platform modernization projects are usually executed either with a big bang (reaching the end-state architecture in one go-live) or a phased approach (progressive transformations with several go-lives).

When selecting the best-suited migration strategy, it is crucial to consider the following factors:

  • The current state of the IT architecture as opposed to the desired state
  • Technical considerations such as migration volumes and testing environment availability
  • Backups and recovery procedures
  • Project methodology (agile or waterfall) and organization
  • Change management and training

Although each approach has pros and cons, there is a general trend toward phased approaches.

Our services: Your journey to your platform modernization strategy

At BearingPoint, we are committed to supporting you in becoming a digital-first bank. We tailor our platform modernization strategy to your individual needs. We would be happy to share our expertise with you.

  • Whitepaper: Core Banking Platform Modernization Strategy
    Whitepaper: Core Banking Platform Modernization Strategy 1.18 MB Download

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