Systematic evaluation of banking technology infrastructure modernization challenges and solutions

Posted: Jan 06, 2022

• Prof. Chloe Mehta
• Prof. Chloe Ricci
• Prof. David Rossi

Abstract

The banking industry stands at a critical juncture in its technological evolution, facing unprecedented pressure to modernize aging infrastructure while maintaining operational stability, regulatory compliance, and competitive positioning. Traditional banking systems, many of which have evolved over decades through incremental enhancements and acquisitions, present complex challenges that extend far beyond mere technical obsolescence. These legacy architectures embody intricate dependencies between business processes, regulatory requirements, and technological implementations that resist straightforward modernization approaches. The imperative for transformation is driven by multiple converging forces: escalating cybersecurity threats, evolving customer expectations for digital services, emerging regulatory frameworks, and the competitive pressure from financial technology innovators. Current literature on banking technology modernization tends to focus on specific technical aspects or case studies without providing comprehensive frameworks that address the multidimensional nature of these transformations. Previous research has examined individual components such as cloud migration strategies, application programming interface implementations, or specific legacy system replacement methodologies. However, these approaches often fail to capture the systemic interdependencies and organizational dynamics that ultimately determine the success or failure of modernization initiatives. Our research addresses this gap by developing and applying a holistic evaluation framework that simultaneously considers technical, organizational, regulatory, and strategic dimensions of banking infrastructure modernization.