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Preparing the Core Banking System transformation

MINDSPIRE Consulting’s experts effectively support the planning and execution of the CBS related tasks.
Discover our core banking transformation preparation services!

2. Preparing the core banking system transformation

The preparation of the Core Banking System transformation strategy is linked to the second stage of the MINDSPIRE’s CBS methodology.

Preparing the Core Banking System transformation

1. Developing a Core Banking Transformation Strategy

3. Implementing the core banking system transformation

4. Core banking system maintenance and support

The main steps of Preparing the Core Banking System transformation

Following the refinement of the strategic directions and the decision on the CBS transformation, it is worth carrying out some additional preparatory steps before the GAP analysis.

With the help of these, the extent of the challenges caused by the CBS transformation can be reduced, the cooperation of large teams will become more efficient, and the high-level goals and tasks will be clearly identifiable to the participants during the execution of the Core Banking System transformation project.

In the following, we describe the steps to be taken in possession of the Core Banking System transformation strategy, but before execution.

In these tasks we support our clients during the preparation of methodological recommendations and the execution of those by utilizing our considerable CBS practical experience.

i.

Simplifying banking products and processes.

ii.

Defining the possible target architecture.

iii.

Creating a Business Capability Map.

iv.

Selecting the supplier and integrator for the core banking system.

v.

Creating the organizational structure of the core banking system transformation project

vi.

Defining the implementation and phasing plan of the core banking system transformation

1. Developing a strategy

2. Preparing the transformation

Simplifying products, processes

Defining target architecture

Business Capability Map

Selecting supplier & integrator

Creating organizational structure

Implementation & phasing plan

3. Implementation

4. Maintenance & support

Simplifying banking products and processes

Typically, financial institutions spend far more resources on implementing various products, services, applications, and processes than rationalizing, updating, or phasing them out. For this reason, in an organization with a complex product and service portfolio built over 15 to 20 years, it can be extremely useful to review and streamline existing products, services, and related processes, even without a profound transformation of the core banking system.

However, when replacing a core banking system, this rationalization is essential and should be implemented before analyzing the requirements for the new system. This will also allow for significant resource savings during the requirement specifications, the precise definition of any discrepancies identified in the optional GAP analysis, the execution of integration tasks, parameterization, the functional, integrated and end-to-end testing, and migration as well.

During a Core banking system replacement, the most important goal of portfolio simplification is to start the project with the most homogeneous, standard products and services possible from an IT point-of-view.
In addition, organizing the processes with a uniform approach, filling high-level documentation gaps, and improving the organization’s end-to-end process review capabilities significantly supports ensuring the completeness of requirements specification and GAP analysis.

The experts of MINDSPIRE Consulting provide support in identifying product and process lists already existing in the organization. They also contribute to the customization of these during the replacement of the core banking system, to the identification of their appropriate level of detail, and to the collection of some relevant information that may support future simplification decisions.

1. Developing a strategy

2. Preparing the transformation

Simplifying products, processes

Defining target architecture

Business Capability Map

Selecting supplier & integrator

Creating organizational structure

Implementation & phasing plan

3. Implementation

4. Maintenance & support

Defining the possible target architecture

A core banking system is usually the most integrated component of a financial institution’s architecture, which has hundreds of applications. Accordingly, one of the most important tasks in preparing for the transformation is to clarify the future role of the core banking system.

There are significant differences in approach between a monolithic core banking system and a so-called microservice-based (composable banking, or coreless banking) architecture.

It is of paramount importance that the functional boundaries of the planned core banking system are identified in advance, as well as what other technologies and solutions will have to be provided with integration options.

In addition to core banking system replacement projects, our company’s experts have gained significant experience in bank mergers as well. Based on clear principles, our seasoned architects are able to develop proposals approved by the organization, which can be a solid groundwork for deeper architectural changes.

1. Developing a strategy

2. Preparing the transformation

Simplifying products, processes

Defining target architecture

Business Capability Map

Selecting supplier & integrator

Creating organizational structure

Implementation & phasing plan

3. Implementation

4. Maintenance & support

Creating a Business Capability Map

We have to identify all those business capabilities, which we want to support with the new core banking system, possibly even broken down into medium and long term.

It has to be clarified that, for example, regarding accounting, payment transactions, trade finance or cash management do we need to provide a solution during the core banking system transformation, or these business capabilities are not affected by the project.

MINDSPIRE experts typically conduct capability surveys during the interviews with the business and IT divisions. In several of our previous projects the chosen tool was BIAN, but we are also open to use the client’s own business capability model.

WHY CHOOSE MINDSPIRE’S SERVICES WHEN PREPARING THE CORE BANKING SYSTEM TRANSFORMATION?

MINDSPIRE Consulting is capable to take on the role of a full CBS integrator based on its knowledge about various core banking systems (e.g.: Flexcube, Transact (T24), Murex, CAMS and SMAC), its own CBS implementation methodology and also its efficiency-enhancing tools that can handle even the most complex changes of banking systems.

Methodology title

We offer our own CBS transformation methodology tested in many core banking projects to our clients.


Our experts reduce the cost of strategic planning using the methodology.

Toolset title

By using our CBS templates, core banking transformation projects can be executed more efficiently.


Our self-developed CBS tools can reduce the risks of transformation projects.

Resources title

Our team of 80+ CBS experts has proven its ability to deliver on several occasions.


We have participated in a number of successful core banking transformation projects in Hungary and the region.

Successfully Delivered Core Banking Transformation Projects

Countries of CBS deliveries so far

Number of our Core Banking consultants

CBS related experience in man-years

1. Developing a strategy

2. Preparing the transformation

Simplifying products, processes

Defining target architecture

Business Capability Map

Selecting supplier & integrator

Creating organizational structure

Implementation & phasing plan

3. Implementation

4. Maintenance & support

Selecting the supplier and integrator for the core banking system

There are many aspects to consider when choosing a bank’s account management system, as each solution differs significantly in terms of pricing, capabilities, integration options, required infrastructure, and data storage (cloud, on-premise).

In addition to selecting the right core banking system, the professional integrator also has a significant role in the successful execution of the project.

We have supported the professional selection of systems in several areas (e.g. CBS, card system, document management, credit rating system). We are open to suggest professional selection criteria and the execution method, or implement the methodologies used by our clients during the selection process.

More information on the practical issues of selecting a system vendor can be found in our previous post: Selecting Core Banking Systems.

1. Developing a strategy

2. Preparing the transformation

Simplifying products, processes

Defining target architecture

Business Capability Map

Selecting supplier & integrator

Creating organizational structure

Implementation & phasing plan

3. Implementation

4. Maintenance & support

Creating the organizational structure of the core banking system transformation project

As part of our Project Management Office (PMO) services, we provide full support in creating and supporting project organizations during core bank transformation projects and tasks.

We set up and operate the project management office, as well as the related governance and organizational tasks, within the methodological framework required by our clients.

These include, for example, the SCRUM, SAFE and other agile methodologies, Prince2, PMP and similar waterfall models, and, in some cases, the Lean approach.

Discover our related Project Management Office Services!

1. Developing a strategy

2. Preparing the transformation

Simplifying products, processes

Defining target architecture

Business Capability Map

Selecting supplier & integrator

Creating organizational structure

Implementation & phasing plan

3. Implementation

4. Maintenance & support

Defining the implementation and phasing plan of the core banking system transformation

The one phase transitions, which are also called the ‘Big Bang’ approach, often seem too complex and risky for the organizations executing it, so even at the planning stage they opt for a phased implementation. However, in certain cases, they only switch to a staged execution later at the implementation phase, due to the arising challenges.

The main point of the phased approach is that during the intermediate stages, the new core banking system will only take over the service of certain business capabilities, while some functions will still be covered by the previous solution. Usually, after the last phase, according to the plans the role of the bank’s previous account management system ends and the project will be completed. For the phased implementation’s detailed planning, it is necessary to determine how the bank intends to segment the task.

This is not an easy task, because in the age of instant payment solutions and fast digital service channels it is rather difficult to envision a parallel operation, supporting a business function with a live and a shadow solution simultaneously.

The branch and the channel-based segmentations also include many challenges. In these cases, the systems must be prepared for parallel operation, and then all changes induced by legal, business and other conditions have to be tracked in two systems, until the previous solutions can be fully retired. At first glance, this may seem to be twice the cost, but in practice, due to the increase in complexity, the cost of maintenance will usually be even higher.
Therefore, it is worthwhile to identify the steps that simultaneously affect existing and new systems at the fewest possible points in terms of end-to-end processes.

In addition, in order to maintain the momentum of the core banking transformation program, it is worth planning regular go-live events.

MINDSPIRE Consulting’s experts provide professional support in defining the identified main phasing aspects, or based on our previous experience, even in commenting on the aspects defined by the bank. Moreover, we can support the development of specific phasing proposals, taking into account the bank’s specialties and preferences. If required, we can assist our clients in planning the intermediate target architecture for the proposed phases as well.

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