Core Banking – How to deliver incremental innovation


What you'll find out in this whitepaper:

  • The current state of banks and their core banking systems.
  • The different approaches banks can take to reduce their dependency on old systems, allowing CIOs to choose the right strategy for a particular risk appetite, legacy entrenchment, and current competitive and operational challenges.
  • What innovating with FintechOS means for banks.

If modernizing core banking infrastructure were straightforward, every financial institution would have done it by now.

The pressure to deliver digitally the full range of banking services available in a branch became acute during the past years.

Customers worldwide get used to seeing the financial side of a transaction embedded in a service. They also get more apt at building on their devices their portfolio of financial services apps – which most often do not belong to their “main bank”. Banks for sure acknowledge this, but achieving such agility and personalization is not easy.

There are operational reasons for transforming internal mechanisms, too. Legacy infrastructure is expensive and cumbersome to manage. The cost of maintaining old systems curbs the ability to fund innovation and be price-competitive in the market.


Key findings

route 55%

Banking executives admitted struggling to reduce the cost of maintaining their legacy systems.

bars 85%

Banking executives said legacy technology was slowing down the delivery of new payment services.

lines 70%

Banking executives confirmed that they were reviewing their core banking platforms.

"Until innovation starts touching customers, it’s just theatre. We've seen banks buy things, we've seen banks create things. But have they really driven the scale of change they wanted? No. Digital isn't about a channel to sell the products you've been selling for years. It’s a fundamentally different way of operating. And there’s still a long way to go."

– David Brear
Founder and CEO, financial services consultancy 11:FS

Modernizing the legacy core with a digital layer on top allows banks to implement a new ‘digital core’ that meets their own and customers’ advanced needs not offered by the legacy core. The ‘digital core’ can support innovation in ways that the legacy infrastructure doesn’t support. It can define new products and services, integrate siloed internal information and provide access to external data services and fintech services.