success story

Modernizing a monolithic legacy core system into a modern ecosystem

Enabling fast & innovative product delivery with reduced risk on a secure, API-driven, cloud-based platform     

Our client is an American multinational financial services company headquartered in New York. 

The client's Core Deposits platform ran 248 deposit products across consumer, business, private, investment, and commercial banks, enabling approximately 55 million accounts and 120 million transactions. The platform operated on a very complex ledger system with interdependencies on several monolithic applications and interfaces that required a significant overhaul to meet the demands of a modern financial ecosystem.

Virtusa helped the client with a strategic core banking modernization program across the client's nine lines of business. With our Engineering First-led consulting approach, we helped the client through the discovery phase of the core banking transformation, which involved evaluating platform and product vendors and helping them make the build vs. buy decision.

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The Challenge

The legacy core architecture of the client's core deposits platform presented several critical challenges:

  • Slow time to market: The reliance on manual processes significantly slowed down the speed of delivery. The time to market for releasing new, valuable, and next-gen offerings was delayed, hindering the client's ability to respond to market demands and customer expectations swiftly.
  • Complex coordination: The platform's monolithic structure meant that any change required extensive coordination between different products, adding layers of complexity. This hindered the platform's ability to evolve and adapt to the changing needs of consumers, creating bottlenecks in innovation and product delivery.
  • Manual processes: Due to the legacy core architecture, The existing system required manual intervention for product testing and auditing. This introduced inefficiencies and heightened the risk with every deployment, as the margin for human error was considerable.
The Solution

Virtusa partnered with the client to modernize their monolithic legacy core system into a modern ecosystem. Key components of the solution included:

  • Product group implementation: We created several product groups (fees & rewards, settlement, etc.) in the platform's core capability layer. These components streamlined operations and added new functionalities to the core platform.
  • Buy-now-pay-later: We created a new offering, Buy-now-pay-later, using APIs for POS (Point-of-Sale) users to make product payments in four installments. These reusable APIs were designed to provide flexibility for future product innovations.
  • Data engineering: We built a framework to replace legacy ETL jobs to modern/custom data pipelines, ensuring data processing was efficient, scalable, and fit for a modern banking environment.
  • Test engineering: Utilized Karate/Springboot for integrated component testing and developed an acceptance test framework. The framework helped reduce the need for manual testing, minimized errors, and sped up deployment cycles. 
Modernize monolithic legacy core system into a Global Banking Platform
The Benefit

The new banking platform gave the client's core banking teams autonomy and enabled fast and innovative product delivery with reduced risk on a modern, secure, API-driven cloud-based platform. Substantial benefits include:

  • Cost reduction: The modernized deposit core banking platform has resulted in a 56% reduction in costs, contributing significantly to the client's bottom line.
  • Increased speed and agility: The low-code platform enabled LOB teams to create new offerings with minimal configuration and coding, drastically reducing the time to market for new products.
  • Enhanced testing efficiency: Implementing the Karate-based Acceptance Test Framework reduced manual testing effort by 90%, ensuring faster and more reliable payments. 
  • Simplified operations: The new banking platform will help consolidate the client's LOBs into a single core ledger and simplify the relationship between platform, product, and cross-impact components. This enabled seamless integration and enhanced operational efficiency across the board.
Infrastructure that meets the future needs of banking

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