Migrating a core banking system is one of the most critical and complex projects a private bank can undertake. While the benefits of modernising outdated systems are clear – from improved efficiency to enhanced customer experiences – the path to a successful migration is fraught with challenges. 

To mitigate risks and ensure success, private banks need to focus on key considerations that guide the process. For a deeper look at the challenges of legacy systems and the benefits of modernising, you can refer to our previous blog post on How legacy systems are holding private banks back.

Here are six essential factors to keep in mind during a core migration:

1. Understand the scope and objectives

The first step in any core migration project is to define its scope and objectives clearly. What are you hoping to achieve? Whether the goal is reducing costs, improving system flexibility, or enhancing customer service, a clear understanding of objectives provides a roadmap for decision-making. Private banks must outline the specific pain points their current system presents and prioritise outcomes that align with long-term strategic goals.

Key questions to ask:

• What are the main drivers for core migration?
• Which processes or workflows need the most improvement?
• How will success be measured?
  
  

2. Choose the right migration approach

Core migration does not have a one-size-fits-all approach. Private banks need to assess their current systems and decide on a migration strategy that best aligns with their needs. Common approaches include:

• Big Bang migration: A full system replacement launched at a single point in time. While faster, this approach carries higher risk and requires meticulous planning.
• Phased migration: Moving components in stages to reduce disruption. This approach is safer but can take longer.
• Parallel migration: Running the old and new systems simultaneously to identify and address issues before full deployment.

Understanding the pros and cons of each approach ensures private banks can select a strategy that minimises disruption while achieving their goals.

Key questions to ask:

• Which migration approach aligns with our risk appetite?
• How much disruption can we realistically manage?
• What contingency plans need to be in place?
  
  

3. Prioritise data quality and migration

Data is the lifeblood of any banking operation, and its successful migration is critical to the success of the new core system. Legacy systems often contain siloed or inconsistent data that needs to be cleaned, organised, and validated before migration.
Private banks should dedicate time and resources to assessing their data quality, resolving inconsistencies, and ensuring data integrity throughout the process. Testing data at each stage of the migration helps prevent errors and avoids costly delays post-implementation.

Key questions to ask:

• Is our data accurate, consistent, and ready for migration?
• What processes are in place to clean and validate data?
• How will we ensure data security during migration?
  
  

4. Engage stakeholders early and often

Core migrations impact every part of the bank, from back-office teams to client-facing staff. Early and consistent engagement with stakeholders is essential to building trust, addressing concerns, and ensuring a smoother transition.
Private banks should involve key stakeholders, including IT, operations, compliance, and front-line staff, throughout the planning and implementation phases. Training and clear communication are critical to helping teams adapt to the new system.

Key questions to ask:

• Who are the key stakeholders, and how will we involve them?
• What training will staff need to maximise the benefits of the new system?
• How will we communicate updates and progress throughout the project?
  
  

5. Mitigate risks through testing and validation

Rigorous testing is non-negotiable for a successful core migration. Private banks must conduct end-to-end testing to identify and resolve issues before going live. This includes functional testing, performance testing, and security checks to ensure the new system operates as expected under real-world conditions.

A comprehensive testing plan, combined with contingency measures, helps private banks reduce the risk of downtime, data loss, or operational disruptions.

Key questions to ask:

• What testing phases are required to validate the system?
• How will we measure system performance and reliability?
• What contingency plans are in place if issues arise during testing?
  
  

6. Focus on post-migration support and optimisation

The core migration process doesn’t end at go-live. Private banks must plan for post-migration support to address issues quickly and optimise the system for long-term success. This includes monitoring performance, resolving unexpected challenges, and gathering feedback from users to refine workflows.
Ongoing support and optimisation ensure the bank realises the full benefits of its new core system, from improved operations to enhanced client satisfaction.

Key questions to ask:

• What support will be in place immediately after go-live?
• How will system performance be monitored and optimised?
• What feedback loops will we establish to ensure continuous improvement?
  
  

Final thoughts

Core migration is a significant undertaking for private banks, but with the right planning, strategy, and execution, it can be transformative. By focusing on these six key considerations – from defining objectives to ensuring ongoing optimisation – private banks can navigate the complexities of migration with confidence, setting the stage for long-term success and growth. 

Frequently asked questions about core migration: