How to build a next-gen infrastructure for customer-focused finance

Banking Journey to Digital Enterprise CSC Blogs

Innovation is the life force of banking. Yet far too many banks find innovation unaffordable. To change, banks need to adopt a next-generation infrastructure that enables them to take the legacy IT architectures they’ve been building for decades and wring out savings of as much as 50 percent of their run costs. They can then shift some or all of those savings to projects that can change the business.

By V. Balasubramanian, CTO, Banking Banking & Capital Markets, CSC

Getting there is a journey that involves migrating off existing systems and moving onto a next-generation infrastructure. Banks can modernize both off-the-shelf and custom applications while moving to new cloud-based platforms. Modernizing applications also sets the stage for banks to make future innovations and improve their customer experience.

Banks must do this coherently. To help, CSC has created a reference architecture that helps banks tackle the issues of customer experience; governance, risk and compliance; payment disruption; and efficiency. It’s made up of four layers: systems of interaction, risk and middle-office applications, data management and infrastructure. Thus equipped, banks can make dramatic transformations.

For example, a large global bank recently embarked on a transformation journey. CSC and the bank designed a next-generation, cloud-based architecture that features on-demand scalability and a pay-for-use cost structure. Then, to take full advantage of the new setup, the bank modernized its applications with an eye toward dramatically improving the customer experience.

The bank will shave as much as 40 to 50 percent from its run-rate costs, then shift a portion of those savings into change-the-bank projects. In the process, the bank hopes to change its ratio of run-the-bank to change-the-bank spending from 80:20 to somewhere near 50:50.

That’s the key benefit of a next-generation infrastructure: customer-focused finance.

V Bala_1-cropV. Balasubramanian is Chief Technology Officer for the Banking & Capital Markets Industry at CSC. With 30 years of experience working in the USA, India, Singapore, Hong Kong, Taiwan and China, Bala helps to define the solution strategy for the industry, leads subject matter expert teams across industry issues, and helps set the technology direction for solutions. He blogs at at


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