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The Greek philosopher Heraclitus is said to have stated: «Change is the only constant.» Without doubt, this applies to the banking sector. The past years have vividly shown how fundamentally the framework conditions can shift — from the global financial crisis and the prolonged negative interest rate phase to cryptocurrencies and new digital ecosystems. Adaptability is key for those who wish to remain successful in banking.

«To ensure adaptability, it will hardly suffice to preserve once-crafted strategies or IT landscapes over the years.»

Business and operating models must be designed to be flexible, adaptable, and resilient. This applies particularly to technological infrastructure — including the core banking system. Ensuring high stability while simultaneously adapting swiftly to new requirements may sound contradictory at first, yet technological progress shows that both goals can be pursued in parallel. 

Modern IT architectures create room for change

Modern software architectures combine different technologies across various platforms into modular IT landscapes. This enables flexible interoperability between stable core systems, agile front ends, and individually connected peripheral systems. The «either-or» decision is thus obsolete and replaced by the ability to think about new technologies in an integrated way. The result is a coherent overall architecture that supports change rather than slows it down.

«When embarking on a technological transformation, it is wise to also rethink the business model.»

The transition to a modern application landscape, as described above, no longer needs to be an expensive and risky big bang: well-designed migration paths allow for a gradual transformation. Architecture concepts based on microservices, APIs, and an integration layer make it possible to systematically decouple existing systems and iteratively evolve toward new functionalities and operating models. The technological transformation can thus proceed in manageable steps — without putting ongoing operations at undue risk.

Technology as an enabler, not as an end in itself

Despite its crucial role, technology alone is not the answer to everything. Initiating a technological transformation without critically reviewing the business and operating model would be a missed opportunity — especially when it involves a complete overhaul, including the core banking system. Such a transformation is inherently strategic. It opens up room for adjustments in products, processes, and customer experiences. Every technological wave offers the chance to tap into new business areas, profitably introduce additional products and services, or streamline the value chain.

Yet expansion should not be the only focus. Refocusing on the essentials must also be part of the realignment. Shedding ballast — in the form of outdated technologies, isolated know-how, and unprofitable services and products — helps reduce complexity. The easiest tasks are always those that can be removed from the to-do list entirely.

«A technological transformation means change.»

Such change must not be driven by IT alone; it must instead be co-shaped and led by the business. When business units understand the potential of new technologies and integrate them into their strategic thinking, the value of transformation unfolds far more effectively. 

Recognizing the opportunities of change

One thing is certain: a technological transformation brings change — change that pushes organizations out of their comfort zones. But it should not be viewed as an unavoidable burden; rather, it is a chance to be seized. Surfing instead of sinking is therefore the motto when a wave of transformation rolls in.

Harald Bader  is Program Manager at Finnova AG Bankware and a member of the Innovation Expert Group at swissICT, the Swiss IT industry association. swissICT annually presents the Digital Economy Awards, which promote innovation. The next award ceremony will take place on November 13 at Zurich’s Hallenstadion.

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