Core Banking Modernisation: Why 70% of Programmes Stall - and How to Fix It

Core banking modernisation remains one of the most challenging - and most consequential - technology programmes a bank can undertake. Global Banking Monitor's 82-page report examines why the majority of transformation programmes stall, and provides a practical framework for improving delivery success and value realisation.

Drawing on programme post-mortems, vendor assessments, and case studies from institutions at different stages of transformation, the report delivers honest analysis of what works, what doesn't, and why.

Key findings

• Approximately 70% of core banking programmes fail to deliver on time, on budget, or on scope. The root causes are overwhelmingly organisational - governance breakdown, cultural resistance, and vendor dependency - rather than technical.
• The phased migration approach is gaining ground over big-bang replacements, but introduces its own complexity around parallel running, data synchronisation, and prolonged dual-operating costs.
• Vendor selection is often the easiest decision - execution is where programmes fail. System integrator capability, internal programme governance, and data migration quality are far stronger predictors of success than platform choice.
• Regulatory expectations around core transformation are increasing. Supervisors are paying closer attention to migration risk, operational resilience during transition, and the adequacy of programme governance.
• The cost-benefit equation is more nuanced than most business cases suggest. Time to value is typically measured in years, not quarters, and the productivity gains often take longer to materialise than planned.

What the report covers

The report is structured across 10 chapters covering the full transformation lifecycle:

1. Executive Summary - Why core transformation matters now, failure rates, and lessons learned
2. The Case for Change - Limitations of legacy systems, cost and complexity drivers, and competitive pressure
3. Why Programmes Fail - Governance breakdown, vendor dependency, and cultural resistance
4. Transformation Approaches - Big bang vs phased migration, parallel run strategies, and de-risking approaches
5. Vendor Landscape - Platform providers, cloud-native challengers, and system integrators
6. Migration Execution - Data migration challenges, testing strategies, and cutover risks
7. Risk and Governance - Programme governance models, regulatory expectations, and risk mitigation
8. Cost and ROI - Investment requirements, time to value, and cost-benefit trade-offs
9. Case Studies - Tier 1 bank transformation, regional bank modernisation, and digital bank build
10. Execution Framework - Step-by-step transformation model and critical success factors

Who should read this

This report is essential reading for CIOs, CTOs, transformation programme directors, and technology leaders responsible for core banking strategy. It is also valuable for board members and risk committees overseeing major technology transformation programmes.

For enquiries about accessing this report, contact [email protected]