Article

EngineeringBeat: Navigating mainframe modernization complexity

Overcoming digital transformation challenges in banking and capital markets

Mainframe modernization—migrating core applications to a more advanced technology environment—isn’t really an option, it’s an imperative. As technology evolves, global and US banks are increasingly under pressure to modernize their tightly coupled, complex mainframe systems to boost agility, leverage modern tools, and enhance security. The right modernization and cloud migration strategy can help modernize legacy systems and enable the digital transformation that drives innovation.

Discover key strategies banks can leverage to modernize mainframe systems and accelerate digital transformation.

View the article ${cta2-copy}

Strategies to meet the modernization imperative

For most global and US banks increasing customer expectations, maintenance costs, operational risks, and regulatory demands are critical modernization drivers. Historically, however, high failure risks, cost overruns, and funding challenges have stymied modernization efforts. To navigate these challenges, banks must adopt tailored, strategic approaches to modernization. Here are five strategies that can help:

Three primary enterprise service delivery goals

1

Simplify complexity and build a sound business case:

Reduce complexity and root out technical debt by conducting a thorough assessment of legacy systems using AI-enabled tools in a phased, incremental approach that produces a strong business case.

Learn more

2

Prioritize and communicate to secure funding:

Collaborate to prioritize high-impact applications and work with providers to obtain flexible pricing models to secure funding and manage costs effectively.

3

Assess and monitor to safeguard security and compliance:

Develop robust security measures, and continuous monitoring protocols and leverage automation to enhance cybersecurity and regulatory compliance.

Download the report

${column4-large-text}

${column4-title}

${column4-text}

${column4-button-text}

Three primary enterprise service delivery goals

4

Leverage AI-enabled tools to avoid disruptions:

Deploy AI-enabled tools accelerate modernization by automating code analysis, optimizing workflows, and spotting potential migration issues before they become problems that cause disruptions.

Learn more

5

Focus on talent to ensure knowledge transfer:

Address talent gaps by investing in training programs, enhancing recruitment strategies, and ensuring knowledge transfer between experienced and new talent.

${column3-large-text}

Assess and monitor to safeguard security and compliance:

Develop robust security measures, and continuous monitoring protocols and leverage automation to enhance cybersecurity and regulatory compliance.

Download the report

${column4-large-text}

${column4-title}

${column4-text}

${column4-button-text}

Mainframe modernization in action

A leading global bank faced legacy technology hurdles, impacting growth, client experience, talent risk, and institutional knowledge. To overcome these challenges, the bank needed to modernize its technology, including moving off the mainframe, which would afford autonomy, innovation, and speed to market. An analysis of mainframe spend versus modernization costs showed that a value-based approach could reduce talent dependency by approximately 75% and decrease time to market by 40%.

The time to modernize is now

Competition in banking is fiercer than ever, and modernization offers the crucial advantage banks need to innovate faster and capture market share. Successful modernization produces significant benefits, including improved innovation capabilities, enhanced customer experiences, cost optimization, increased security and compliance, and the ability to attract top talent. While challenges exist, the right strategy can smooth the path. Modernization is not a choice; it's a necessity, and the time to act is now.

About the EngineeringBeat series

Want to know the latest in mainframe modernization, cloud, or engineering? We’re on the beat, covering sector-specific trends and hands-on strategies to help you stay up-to-the-minute. Spend just a few moments—a beat—and gain actionable insights to move your business forward.

Subscribe for updates ${cta2-copy}

Align your business strategy to future proof your organization while maximizing ROI

Get in touch

Michelle Gauchat

Principal | US Consulting Banking & Capital Markets Sector Leader

mgauchat@deloitte.com

+1 703 251 3949

Michelle is the leader of Deloitte’s US Consulting Banking and Capital markets sector and responsible for leading the strategy and bringing together the right offerings to serve Deloitte’s portfolio o... More

Marlin Metzger

Application Modernization & Innovation Offering Leader

mmetzger@deloitte.com

+1 512 221 7240

Marlin, a Deloitte principal, is the Application Modernization & Innovation leader responsible for legacy Application Modernization, Cloud Migration, and Product Engineering services. He has more than... More

Fullwidth SCC. Do not delete! This box/component contains JavaScript that is needed on this page. This message will not be visible when page is activated.

Viewing offline content

EngineeringBeat: Navigating mainframe modernization complexity

Overcoming digital transformation challenges in banking and capital markets

Strategies to meet the modernization imperative

Three primary enterprise service delivery goals

1

Simplify complexity and build a sound business case:

2

Prioritize and communicate to secure funding:

3

Assess and monitor to safeguard security and compliance:

${column4-large-text}

${column4-title}

Three primary enterprise service delivery goals

4

Leverage AI-enabled tools to avoid disruptions:

5

Focus on talent to ensure knowledge transfer:

${column3-large-text}

Assess and monitor to safeguard security and compliance:

${column4-large-text}

${column4-title}

The time to modernize is now

Align your business strategy to future proof your organization while maximizing ROI

Get in touch

Principal | US Consulting Banking & Capital Markets Sector Leader

Application Modernization & Innovation Offering Leader

Recommendations

Link your accounts

You previously joined My Deloitte using the same email. Log in here with your My Deloitte password to link accounts. | | Deloitte users: Log in here one time only with the password you have been using for Dbriefs/My Deloitte.

You've previously logged into My Deloitte with a different account. Link your accounts by re-verifying below, or by logging in with a social media account.

Looks like you've logged in with your email address, and with your social media. Link your accounts by signing in with your email or social account.