1. Identify the drivers for change
Before embarking on a modernization journey, it’s essential to understand the key drivers. These often include the need for flexibility, reduced maintenance costs, and better integration with modern fintech ecosystems.
2. Leverage Thought Machine’s ecosystem
Thought Machine’s Vault Core provides a cloud-native platform that integrates seamlessly with other systems using APIs. This modular approach offers scalability and innovation, allowing banks to connect with other best-in-class systems and meet changing market needs swiftly.
3. Consider the possibilities offered by modernization
Modernization opens up new possibilities. Banks can introduce innovative products with faster time-to-market and enhanced capabilities, can introduce innovative products, engage new markets, and leverage data more effectively.
4. Approach the implementation beyond technical aspects
Core banking modernization is not just a technical project; it’s a strategic initiative. Involve departments like compliance, finance, and marketing early to align the project with broader business goals and ensure regulatory compliance.
5. Create a target architecture
Adopting a modern architecture is key. Transitioning to a microservices-based system, with clearly defined layers, ensures a maintainable, scalable, and secure banking infrastructure.
6. Split your business into domains
Using Domain-Driven Design (DDD) to split business functionalities into Bounded Contexts enhances the effectiveness of microservices. This approach allows for independent development and scaling of different banking operations.
7. Define standards and metrics
Establishing clear standards and metrics is crucial for consistent progress and quality control. This includes guidelines for development and metrics to track cost reduction, customer satisfaction, and time-to-market improvements.
8. Use proofs of concept to assess vendor suitability
A Proof of Concept (PoC) allows you to test vendor capabilities before full-scale implementation. This step helps mitigate risks and ensures the chosen solution aligns with your business needs.
9. Document ongoing modernization
Continuous documentation is vital for the success of modernization. It ensures that changes are well-tracked and understood, preventing future operational issues and helping to attract new talent.
With five core banking Centers of Excellence and over 220 experts certified in Vault, our strong partnership with Thought Machine uniquely positions GFT to support your core banking transformation. Download our eBook ‘Implementing Vault Core: 9 key insights for project success” to get a better understanding of how to build a robust, future-ready system that meets the demands of today and tomorrow.
