A modular banking architecture gives numerous advantages. It allows banks to rapidly combine, build, deliver, and scale products and services.
But it’s not that easy to get a modular structure, as many banks struggle to decouple their legacy systems. Therefore, it makes sense to start moving their traditional systems to the cloud to leverage the benefits they can get from it, such as innovation, costs reductions, and fast scalability.
In this third chapter, we will introduce you additional points to look at when choosing a core banking system vendor. We will give you a brief introduction to the importance of scale when it comes to cloud-native solutions. The relevance of relying on a vendor with a 24/7 service, and as in previous chapters, you can also download a list of questions to include in yourRFI.
Cloud native tooling has automatic scaling. A lift-and-shift solution does not. This is a clear distinction between cloud-ready and cloud-native. With cloud-ready, portions of the solution may scale automatically but not all of it. Make sure all elements are scalable.
Always check the SLA (service level agreement) for availability guarantees. A vendor of a cloud solution should be able to provide 24/7 uptime and service. Just imagine that percentage of downtime happening in the middle of black Friday and base your selection on that.
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