Cloud transformation is no longer just an IT issue, but a central component of business strategy
While young fintechs and challenger banks are already fully committed to Software-as-a-Service (SaaS) models, established financial institutions are often faced with more complex challenges: System infrastructures that have evolved over decades, high levels of legacy issues, and complex internal compliance rules often make a complete SaaS migration difficult to implement or risky in the short term.
In such cases, a step-by-step migration strategy has proven successful: The first step involves switching to a Platform-as-a-Service (PaaS) solution, where platform management is handled externally. The applications remain internally for the time being. This creates the technological foundation upon which a complete SaaS migration can follow in the second step – by outsourcing application operations, management, and updates.
The migration begins from the customer’s perspective
Cloud migration cannot be thought of solely from a technical perspective – it begins from the customer's perspective. Especially in private banking and wealth management, financial institutions must offer digital applications that are seamless, responsive, and customisable to meet rising investor expectations. A modern front end alone is not enough – deep integration with middleware and back-end systems is necessary. Technology, data management, security, and the customer experience must be understood as components of a holistic transformation. The goal is clear: a consistent, real-time data set across all system layers – for a truly seamless experience, robust performance, and scalability.
With the entry into force of the EU's Digital Operational Resilience Act (DORA) in January 2025, the requirements for digital resilience in the financial sector have increased significantly. What initially appears to be a regulatory obstacle opens up strategic opportunities: DORA forces banks to align their IT architectures with resilience, transparency, and traceability. Modular operating models with configurable components are no longer just attractive—they are increasingly essential.
Change is no longer solely risk-driven; instead, it aims at building scalable, future-proof systems. Both PaaS and SaaS play a key role here. But even the best platform is worthless if the operating model does not keep pace. Agile teams, forward-thinking, and a culture that embraces change are needed. There is no one-size-fits-all solution – strategies like "lift and shift," "reduce and externalise," or "lift and optimise" help choose the right migration model for your specific situation. Because the fastest path is not always the most resilient.
Modular architectures must be used consistently
Another key factor for successful digital transformation projects is the consistent use of modular architectures. Especially for larger institutions with complex IT landscapes, a composable architecture approach offers the necessary flexibility to modernise existing systems gradually and without functional disruptions or parallel structures.
Such architectures enable the quick and seamless integration of new components such as customer portals, reporting functions, or third-party interfaces. Instead of monolithic redesigns, they create an environment in which individual modules can be developed, replaced, or scaled independently. This not only reduces implementation risks but also supports agile operational organisation.
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