In an ever-evolving financial sector, banking institutions and fintechs face a major challenge: modernizing their technological infrastructures to meet new market expectations while maintaining operational continuity. As we move through 2025, digital transformation is no longer optional but a strategic necessity to remain competitive. Yet, according to a recent study by IBS Intelligence, only 25% of financial institutions are focusing on upgrading their core banking infrastructure, creating a concerning gap that could hinder their long-term development.

The concept of Core Banking Platform as a Service is emerging as a promising solution to transform banking infrastructures without disrupting daily operations. This approach allows financial institutions to progressively modernize their systems while immediately benefiting from the advantages of cloud technologies and modular architectures. But how can this transformation be implemented effectively and securely?

In this article, we'll explore the current challenges of banking infrastructures, the advantages of the PaaS model for Core Banking, strategies for transformation without disruption, practical success cases, and how to prepare your institution for the future with an agile and scalable infrastructure.

The State of Banking Infrastructures in 2025

The Challenges of Legacy Systems

In 2025, many financial institutions continue to operate with aging legacy systems, often developed decades ago. These monolithic architectures, while reliable, present significant limitations in the face of current market demands. According to TechMagic, 80% of financial institutions in Europe and 75% of banks plan to replace their core system by 2025, testifying to the urgency of the situation.

The major problems with these systems include their rigidity, which hinders innovation and significantly slows down the launch of new products. Maintaining these infrastructures is also becoming increasingly expensive and complex, with technical skills becoming scarcer in the market. Additionally, integration with modern technologies such as APIs, artificial intelligence, or blockchain proves particularly difficult, limiting the possibilities for evolution.

These technical constraints translate into extended time-to-market for new services, a competitive disadvantage against more agile fintechs, and high operational costs that weigh on the profitability of traditional financial institutions.

The Evolution of Customer and Regulatory Expectations

Customer expectations have radically evolved in recent years, pushing financial institutions to rethink their offerings and modes of interaction. In 2025, customers demand personalized banking experiences, accessible 24/7 through different channels, and offering complete transparency on their financial operations.

At the same time, the regulatory environment continues to become more complex. Directives such as PSD2 in Europe, compliance requirements for anti-money laundering (AML), and data protection regulations (GDPR) require banks to constantly adapt their systems. The ability to respond quickly to these regulatory changes has become a major competitive advantage.

This dual pressure – demanding customers and vigilant regulators – places financial institutions in a dilemma: how to modernize their infrastructures to meet these expectations while maintaining the stability and security that characterize the banking sector?

The Risks of Poorly Planned Transformation

Transforming a banking infrastructure is not without risks. A poorly planned project can lead to significant operational disruptions, substantial budget overruns, or even compromise the security of customer data.

According to the Forbes Technology Council, nearly 70% of digital transformation projects in the banking sector exceed their initial budget by more than 30%, and more than 60% take longer than expected. These alarming figures are explained by the complexity of data migrations, difficulties in integration with existing systems, and the underestimation of training and change management needs.

The consequences of a poorly executed transformation can be disastrous: service interruptions affecting customer trust, security incidents compromising sensitive data, or inability to meet regulatory obligations. These risks explain why many financial institutions still hesitate to undertake a complete transformation of their infrastructure.

Core Banking Platform as a Service: Definition and Advantages

What is a Core Banking Platform as a Service?

Core Banking Platform as a Service (CBPaaS) represents a major evolution in how financial institutions can design and deploy their technological infrastructures. It's an approach that combines the advantages of cloud computing with the essential functionalities of a central banking system.

Concretely, a CBPaaS platform like the one offered by Basikon provides all the components necessary for the operation of a financial institution: account management, transaction processing, payment systems, credit management, regulatory reporting, etc. These components are offered as modular services, accessible via APIs, and hosted in the cloud.

This approach differs from traditional systems in its flexibility: institutions can select only the modules they need, configure them according to their specific requirements, and evolve them progressively without disrupting the entire system. The platform handles technical aspects (infrastructure, security, updates), allowing internal teams to focus on creating value for customers.

Operational and Strategic Benefits

Adopting a Core Banking Platform as a Service offers numerous advantages both operationally and strategically. On the operational side, it allows a significant reduction in costs for infrastructure and maintenance, thanks to the usage-based pricing model that eliminates massive capital investments.

Scalability is another major advantage: the platform can instantly adapt to variations in load, whether seasonal activity peaks or organic growth of the customer base. This elasticity guarantees optimal performance in all circumstances, without requiring manual resizing of resources.

Strategically, CBPaaS considerably accelerates time-to-market for new products and services. As illustrated by the case of Leascorp, which was able to rapidly develop its network of vendor partners and launch innovative new products thanks to Basikon, this agility becomes a decisive competitive advantage in a constantly evolving market.

Finally, the modular approach facilitates regulatory compliance: updates related to regulatory changes are deployed centrally by the platform provider, ensuring that all clients immediately benefit from the latest compliance features.

Comparison with Traditional Approaches

To better understand the value of Core Banking Platform as a Service, it's useful to compare it with traditional approaches to modernizing banking infrastructures.

The traditional approach often consists of a complete replacement of the existing system with a new solution, generally deployed on-premises or in a private cloud. This "big bang" requires considerable initial investments, long development cycles, and carries high risks of operational disruption. According to 10x Banking, these projects can extend over 3 to 5 years and cost several tens of millions of dollars.

In contrast, the CBPaaS model allows for progressive and modular transformation. Institutions can modernize their infrastructure in stages, starting with the most critical areas or those offering the quickest return on investment. This approach significantly reduces risks and allows for short-term benefits while pursuing a long-term vision.

Moreover, while traditional systems require large technical teams for their maintenance and evolution, the PaaS model transfers a large part of this responsibility to the platform provider. Institutions can thus reduce their operational costs and redirect their resources toward higher value-added initiatives.

Strategies for Transformation Without Disruption

The Modular and Progressive Approach

The key to successful transformation without operational disruption lies in adopting a modular and progressive approach. This methodology consists of breaking down the banking infrastructure into distinct functional components that can be modernized independently of each other.

Rather than replacing the entire system at once, institutions can identify priority areas based on strategic criteria: technical obsolescence, commercial opportunities, regulatory pressure, etc. For example, a bank might start by modernizing its credit management system with a solution like Basikon Core Lending before extending the transformation to other areas.

This approach has several advantages. It limits risks by circumscribing the impact of each transformation phase. It also offers the possibility of quickly demonstrating the value of the project through early wins, thus facilitating the buy-in of internal stakeholders. Finally, it allows for adjusting the strategy based on feedback, creating a virtuous cycle of continuous improvement.

Data and Process Migration

Data migration often represents the most complex challenge in a banking infrastructure transformation project. Legacy systems contain decades of customer information, transactions, and histories that must be preserved and correctly transferred to the new platform.

An effective data migration strategy involves several critical steps. First, an analysis and cleaning phase identifies essential data and resolves quality issues. Then, defining a clear target data architecture establishes how information will be structured in the new system. The migration itself can then be carried out in batches or continuously, depending on the nature of the data and operational constraints.

Alongside data migration, business processes must also be adapted to fully leverage the new capabilities offered by the CBPaaS platform. This transformation of processes is an opportunity to rethink customer journeys, automate certain manual tasks, and introduce new value-added functionalities.

The experience of Arrawaj, a Moroccan microfinance foundation, perfectly illustrates this approach. By replacing two separate systems (Infosys' Finacle Core Banking and a proprietary tool) with a unified Basikon platform, they not only migrated their data but also transformed their processes to improve financial inclusion.

Organizational Change Management

The human dimension is often underestimated in technological transformation projects. Yet, the success of a migration to a CBPaaS platform largely depends on employee buy-in and their ability to adapt to new tools and working methods.

An effective change management strategy begins with clear communication of the vision and objectives of the project. It's essential to explain why this transformation is necessary and what benefits are expected, both for the organization and for the employees themselves.

Training also plays a crucial role. Users must be supported in learning how to use the new platform, with programs adapted to their roles and responsibilities. These trainings should be delivered at the right time – neither too early (risk of forgetting) nor too late (risk of resistance) – and complemented by close support during the transition phase.

Finally, involving key users from the early phases of the project allows for gathering their feedback, adapting the solution to their real needs, and creating a community of ambassadors who will facilitate adoption by their peers. This collaborative approach is particularly important in the banking sector, where business processes are often complex and specific to each institution.

Practical Cases of Successful Transformation

Case Studies of Financial Institutions

Concrete examples of successful transformation offer valuable lessons for institutions considering modernizing their banking infrastructure. The case of Arrawaj is particularly instructive in this regard.

This Moroccan microfinance foundation undertook to transform its banking infrastructure by replacing two separate systems – Infosys' Finacle Core Banking and a proprietary tool – with a unified Basikon platform. This ambitious project aimed to improve financial inclusion by simplifying processes and broadening access to financial services.

Another inspiring example is that of Leascorp, a company specializing in financial leasing that chose Basikon to support its rapid growth. Faced with increasing data volume (+150% contracts) and the need to manage complex customer profiles, Leascorp needed a more agile and robust solution. The Basikon platform allowed them to develop their network of vendor partners (more than 300 partners) while maintaining the agility necessary to launch innovative new products.

These cases demonstrate that a well-planned banking infrastructure transformation can not only improve operational efficiency but also create new business opportunities and strengthen the value proposition for customers.

Lessons Learned and Key Success Factors

The analysis of successful transformation projects reveals several key success factors that can be applied to other similar initiatives.

First, strategic alignment is essential. Projects that succeed are those that clearly align with the company's overall strategy and benefit from strong support from leadership. As highlighted by the Federal Reserve Bank of Kansas City in its analysis of options for modernizing banking systems, this shared vision allows for maintaining course despite the inevitable difficulties encountered along the way.

Second, collaboration between business and IT teams appears as a determining factor. The most successful projects are those where business experts and technical specialists work hand in hand, in a truly collaborative approach. This synergy ensures that the technical solution effectively meets business needs and that innovation opportunities are fully exploited.

Third, clear and agile governance is necessary to effectively pilot these complex projects. Organizations that establish mechanisms for rapid decision-making, regular progress reviews, and well-defined escalation processes are better equipped to overcome obstacles and adapt their approach based on feedback from the field.

Measuring Post-Transformation Performance

To evaluate the success of a banking infrastructure transformation, it's essential to define and track relevant performance indicators, both quantitative and qualitative.

On the quantitative side, several metrics can be tracked: reduction in operational costs, improvement in time-to-market for new products, increase in the volume of transactions processed, or decrease in the number of incidents. For example, Orion Leasing observed a spectacular improvement in their time-to-yes, going from 10 minutes to less than 20 seconds after implementing the Basikon platform, as reported in their case study.

On the qualitative side, customer and employee satisfaction constitutes a crucial indicator of the success of the transformation. Regular surveys, interviews with key users, and analysis of spontaneous feedback allow for measuring this more subjective but equally important dimension.

It's also relevant to evaluate the organization's innovation capacity after the transformation. The number of new products launched, the speed of adaptation to regulatory changes, or the ease of integration with external partners are all indicators of this new agility.

Preparing for the Future with an Agile Infrastructure

Technological Trends to Integrate

To build a truly sustainable banking infrastructure, it's essential to anticipate and integrate the technological trends that will shape the financial sector in the coming years.

Artificial intelligence and machine learning are emerging as transformative technologies for the banking sector. According to Banking Exchange, by 2025, implementing automation models and AI-powered platforms will be crucial for improving efficiency, resilience, and service personalization. These technologies can be applied to many areas: risk analysis, fraud detection, automated customer service, or offer personalization.

Blockchain and distributed ledger technologies also offer interesting perspectives for securing and simplifying certain banking processes, particularly in the areas of international payments, identity management, or trade finance.

Finally, the Internet of Things (IoT) opens new possibilities for data collection and automation of certain financial services. For example, in the field of asset financing, connected objects can allow real-time monitoring of financed equipment, thus facilitating risk management and optimization of maintenance processes.

Scalability and Evolutivity of Platforms

In a constantly evolving environment, the scalability and evolutivity of banking platforms become essential attributes. A modern infrastructure must be able to easily adapt to load variations, whether punctual activity peaks or organic growth in business volume.

The cloud-native architecture of Core Banking as a Service platforms like Basikon perfectly meets this need for flexibility. By relying on technologies such as microservices, containers, and orchestration, these platforms can automatically adjust their resources according to demand, thus guaranteeing optimal performance in all circumstances.

Beyond technical scalability, functional evolutivity is just as important. The ability to rapidly integrate new functionalities, adapt to regulatory changes, or connect to new partners constitutes a major competitive advantage in a constantly changing market.

The example of Orion Leasing perfectly illustrates this dimension. Thanks to the Basikon platform, this company was able to expand to multiple countries, automate its decision-making processes, and manage an increasing volume of transactions (600+ clients, 90,000+ data exchanges) while maintaining great operational agility.

Building an Open Banking Ecosystem

The future of financial services is taking shape around the concept of an open banking ecosystem, where different actors collaborate to create an enriched and coherent service offering for end customers.

This vision relies on open banking and open APIs that allow secure exchange of data and functionalities between different platforms. A modern financial institution must not only expose its own services via standardized APIs but also be able to consume APIs from external partners to enrich its offering.

Core Banking as a Service platforms play a central role in this evolution by providing the technical infrastructure necessary for these exchanges. As highlighted in Basikon's guide on modernizing banking infrastructures, these platforms facilitate integration with specialized fintechs, payment service providers, or marketplaces, thus creating a rich and diverse ecosystem.

This collaborative approach allows financial institutions to focus on their areas of excellence while offering their customers a complete range of innovative services. It also fosters the emergence of new business models based on data sharing and the creation of common value.

Conclusion

The transformation of banking infrastructures represents a major challenge for financial institutions in 2025, but it also constitutes a unique opportunity to rethink their operational model and value proposition. The Core Banking Platform as a Service approach offers a promising path to achieve this transformation without disruption, combining flexibility, security, and innovation.

The keys to success lie in adopting a progressive and modular strategy, rigorous management of data and process migration, and attentive support for organizational change. The practical cases presented in this article demonstrate that a well-planned transformation can not only modernize the technical infrastructure but also create new business opportunities and significantly improve the customer experience.

By preparing for the future with an agile, evolutive, and open infrastructure, financial institutions give themselves the means to remain competitive in a constantly changing environment. They can thus focus on their core business – financial innovation and customer relationships – while relying on robust and flexible technological platforms to support their growth.

Do you want to transform your banking infrastructure without operational disruption? Discover how Basikon can accompany you in this strategic transition. Request a personalized demonstration today to explore the possibilities offered by our Core Banking Platform as a Service.

FAQ: Banking Infrastructure Transformation

What is the difference between a Core Banking as a Service approach and a traditional banking system?

A traditional banking system is generally deployed on-premises, requires significant initial investments in hardware and licenses, and involves long and complex update cycles. In contrast, a Core Banking as a Service platform is hosted in the cloud, offers a usage-based pricing model, and provides a modular architecture allowing for progressive evolutions. This approach significantly reduces infrastructure costs, accelerates time-to-market for new products, and facilitates adaptation to regulatory and technological changes.

How long does a banking infrastructure transformation typically take?

The duration of a transformation project depends on many factors: the size of the institution, the complexity of the existing infrastructure, the extent of the transformation, and the chosen approach. A complete and simultaneous replacement ("big bang") can take between 2 and 5 years. However, a modular and progressive approach, facilitated by Core Banking as a Service platforms, allows for transformations in stages, with first visible results in a few months. For example, Revive Capital was able to launch its leasing activity in just four months thanks to Basikon's configurable solution.

How to ensure data security during and after migration to a Core Banking as a Service platform?

Data security is a major concern during a banking infrastructure transformation. Several measures must be put in place: encryption of data in transit and at rest, strict access controls based on the principles of least privilege, regular security audits, and robust business continuity plans. Core Banking as a Service platform providers invest massively in security and compliance, with certifications such as ISO 27001, SOC 2, or PCI DSS. It's also recommended to conduct thorough testing before, during, and after migration to ensure that all security measures function as planned.

What are the main organizational challenges during a banking infrastructure transformation?

Beyond technical aspects, a banking infrastructure transformation involves significant organizational challenges. Resistance to change is often the first obstacle, with employees accustomed to certain tools and processes who may fear for their future role. Project governance constitutes another major challenge, requiring effective coordination between different teams (business, IT, compliance, etc.). Finally, acquiring and developing new skills represent a crucial issue, as modern platforms require different profiles than those necessary for legacy systems. A well-designed change management strategy, including transparent communication, adapted training, and early user involvement, is essential to overcome these challenges.

How to measure the return on investment of a transformation to a Core Banking as a Service platform?

The ROI of a banking infrastructure transformation can be measured through several dimensions. On the financial side, savings on infrastructure, maintenance, and technical personnel costs constitute direct indicators. Improvement in operational efficiency translates into metrics such as reduced processing time for operations or automation of manual tasks. On the commercial side, acceleration of time-to-market for new products, increase in prospect conversion rate, or improvement in customer retention are relevant indicators. Finally, more qualitative benefits such as improved employee experience, reduced operational risks, or increased organizational agility should also be taken into account in the overall evaluation of ROI.