Legacy core systems limit the speed of change
CriticalProduct and operational logic is implemented in tightly coupled systems.
- Consequences
- New products and integrations are developed slowly and with risk.
Business area digitalisation analysis
Banking and credit institutions digitalisation
How to connect customer onboarding, everyday banking, lending, risk, compliance and legacy core systems
- Digital maturity
- high
- Digitalisation potential
- 88/100
- Biggest challenge
- Legacy core systems limit the speed of change
- Biggest opportunity
- Unified customer and banking solutions platform
A highly mature yet still high-potential business area where value is driven by the ability to modernise processes without compromising control and business continuity.
Operating model of banks and credit institutions
Banks simultaneously manage a large flow of daily operations, long-term credit relationships, customer funds, regulatory compliance and complex technological infrastructure.
Large scale of operations
Even a small error or slow process, repeated thousands of times, creates a significant cost or risk impact.
Long system history
Product logic and data are often fragmented across core and specialised systems built at different times.
Control integrated into the service
KYC, sanctions, credit, fraud and operational risk checks are an integral part of customer processes.
Continuous operation requirement
Changes must be implemented without disrupting payments, customer access and critical operations.
Market and technology context
The technology direction in banking is shaped by modular core system architecture, application programming interfaces (API) and event exchange, real-time fraud control, operational resilience and controlled AI use.
- Core system modernisationBanks are seeking to decouple product, process and channel logic so that changes are faster and less risky.
- Operational resilienceManagement of critical services, suppliers, incidents and recovery scenarios is becoming an ongoing part of technology planning.
- Real-time risk controlFraud, identity and transaction signals must be evaluated during the process, not only after the event.
- Controlled AI useAI is deployed only where data, model version, explainability and human accountability can be managed.
Typical operating process
01
Customer need and identity
The customer, their representation rights, need and appropriate product are established.
02
Data and compliance checks
Documents, beneficiaries, sanctions, risk indicators and consents are verified.
03
Product or credit decision
Rules, models, pricing, expert review and approvals are applied.
04
Contract and activation
Documents are signed, products are created, entitlements and initial states are set.
05
Daily operations and monitoring
Payments are executed, servicing, risk control and customer activity monitoring are performed.
06
Changes, exceptions and closure
Data updates, disputes, contract amendments, breaches and product closure are managed.
Digital maturity model for the business area
0
Manual processes and separate product systems
Customer, product, decision and control information is managed separately, with significant exceptions relying on email, spreadsheets and individual employee knowledge.
1
Fragmented products and manual exceptions
Digital channels are in operation, but customer, product and risk information is fragmented, with complex cases managed via email and separate workstations.
2
Digital core customer journeys
The most common processes are performed online, but their exceptions and data verification still rely on manual actions.
3
Integrated client and process management
Core customer journeys have unified states, documents, decision rules and integrations with core systems.
4
Real-time data-driven banking Typical current situation
Customer, transaction and risk signals are used directly in processes, whilst control evidence is collected automatically.
5
Modular and adaptive banking platform Target
Product features, processes and data are managed as reusable services, whilst AI solutions are continuously validated against outcomes and risk.
Key finding
Core banking operations are already digital, so the greatest remaining value lies not in a new channel, but in integrated client, decision and exception processes.
The strategic direction is modular core system modernisation, but the first project must address one clear process and have defined risk controls.
A practical initial scenario - client onboarding, KYC checks, decision, contract and product activation in a single traceable chain.