CGS

Case Study - Bank's Core

Global Bank’s Core Banking System Modernization with CGS Technologies Associates Inc

Need for the Project

The Bank recognized the imperative to diminish its dependence on legacy mainframe systems built on Natural/Adabas across all their IT products, driven by the goal of minimizing mainframe MIPS usage and mitigating the risks associated with relying on retiring mainframe experts. Moreover, the legacy financial system ate up 70% to 85% of banks’ total IT budgets.

Simultaneously, there was a critical need to modernize a Java middleware that had been developed over two decades. This middleware played a pivotal role in facilitating mainframe services for front-end applications. This strategic move aimed to:

  • Gain competitive advantage.
  • Reduce maintenance costs.
  • Maintain regulatory compliance.
  • Mitigate the risks associated with relying on retiring mainframe experts.
  • Imperative focus on modern, scalable, secure, and agile system to address growing future needs.

CGS Role

CGS Technologies Associates Inc. (“CGS”) was contracted as a long-term strategic partner to modernize our client’s systems for one of their primary lines of business. To achieve this, CGS conducted a comprehensive assessment of the existing mainframe system, scrutinized its infrastructure, introduced gradual decoupling, and added modularity in the architecture and rationalize through standardization of tech interfaces corresponding to the legacy system, and envisaged scenarios. Through meticulous fit-gap analysis, we proposed tailored modernization options, carefully evaluating alternatives and analysing their benefits. This helped the bank to reduce system’s operational and maintenance costs, simplified further development and increased agility.

CGS also conducted a preliminary cloud migration assessment as the client sought assistance in swiftly transitioning their bounded contexts to Azure, employing novel methodologies to enhance agility and speed. This also involved migrating data and reengineering business functions to the Microsoft Azure Cloud.

To expedite migration across the enterprise, CGS assisted the client in implementing data replication-as-a-service. This acceleration in application development eliminated the need for dedicated data resources, enhancing efficiency.

Benefits of the Core Banking System

The modernized banking system was upscaled to serve approximately 150,000 internal users, responsible for overseeing diverse banking and investment processes on both national and international scales. Additionally, around 100,000 external users (contractors) utilized the system to access financial data and submit/respond to requests.

  • Flexibility and Agility: Imbibed the flexibility and agility to client’s stakeholders to combine microservices effectively, delivering the desired business capabilities.
  • Cost Savings: Reduced footprint of IBM DB2 and Mainframe MIPS, resulting in cost savings and reduced risk due to decreased reliance on scarce mainframe experts. The cloud migration also resulted in lowered maintenance costs.
  • Accelerated application development: Accelerated application development eliminating the need for dedicated data resources, enhancing efficiency.
  • Maintenance-Free Operations: The migration from the legacy on-premise system to Azure eliminated the need for ongoing maintenance, streamlining operational processes.

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