Core systems transformation


Core systems transformation

We understand that implementing a new core system is one of the most challenging initiatives a financial institution can undertake. It requires bold decisions and rigorous program implementation to achieve sustainable business and technology transformation.

The market challenge

The market demands continuous improvement in operational performance and ever lower cost-income ratios. The combined pressures of saturated markets, transient customers, heightened competition from mergers and acquisitions, greater regulatory scrutiny and complexity, and increasingly stringent risk management constraints make these aspirations difficult to deliver on.

A potential solution?
We believe that past incremental investments in IT could be a bank’s greatest weakness, locking in cost, creating complexity and inhibiting responsiveness to the market.

We thus see core systems transformation as the only way financial organisations can achieve the breakthrough transition that will enable them to operate efficiently and compete effectively in the financial services market of the future.

Cost efficiency, radical cost reduction and revenue enhancement programmes can offer immediate or short-term benefits to the “cost-income ratio”; however, at Deloitte we believe this may no longer be sufficient in 21st century banking.

We define core systems transformation as the end-to-end implementation of a core financial system or the complete replacement of a significant proportion if not all of an institution’s heritage systems with a modern package-based solution able to match business needs and handle future constraints. 

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Our services

Our approach to core system transformation focuses on package-led implementation, delivered with rigorous execution processes and the necessary expertise to solve the most complex business and technology transformation challenges.

We offer a comprehensive toolkit that can help you to navigate this complex and challenging opportunity.

Using our frameworks, we have helped clients break down this significant process into manageable chunks via our value proposition:

  • Package selection: assistance in collating your requirements and selecting the most appropriate package for your financial institution from a wide range of potential partners
  • Target operating model: we help you review, and if appropriate, simplify the application and IT environment, as well as create your implementation road map
  • Implementation: support throughout the lifecycle of your core system implementation:
    • strategy & business case
    • vendor management
    • implementation & upgrade support
    • system integration
    • project management & PMO
    • testing & data migration
    • quality assurance & governance
    • post go-live support 
Our services


Michael Holzmann

Michael Holzmann

Partner | Industry Solutions & Digital Banking

Michael leads the Digital Banking team and the Temenos Center of Excellence at Deloitte, where he focuses on CIO Advisory, Digital and Core Banking Transformation programs across all Banking segments ... More