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Core Banking Modernization

VUB’s perspective and experience

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Core Banking Modernization

Introducing VUB

1.

Core Banking Modernization Strategy

2.

VUB Experience

3.

Conclusion, Q & A

4.

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VUB Bank, Intesa Sanpaolo Group

    • Second largest commercial bank in Slovakia
    • Established in 1990
    • Member of ISP Group since 2001
    • Wide product portfolio covering all segments
    • Complex IT architecture
    • Strong internal IT capabilities
      • Key systems fully supported in-house
      • In-house development
    • IT is a strategic asset and strongly influences decision-making

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Core Banking Modernization Strategy

1.

Key dilemma:�Revolution vs. Evolution

  • System replacement vs. Evolutionary changes built on what we already have

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2.

Who is best positioned to choose the approach?

  • External consultants (market experience, system knowledge)
  • Vendors
  • The bank itself (deep understanding of products, processes, and systems)

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3.

Important context to consider

  • Budget vs. Total cost
  • Opportunity cost
  • Time, Resources, Architecture
  • Post-implementation changes
  • Long-term maintenance

4.

Business context

  • Regulatory and business requirements
  • Legacy and local products do not always fit group strategy and architecture
  • Transformation is not about changing systems only

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5.

Evolution

  • Success belongs not to the strongest or smartest ones, but to the most adaptable
  • More resilient to failure

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6.

Modernization principle

  • Modern core banking transformation leverages existing systems through functional decoupling and modular architecture supported by strategic vendor partnerships that enable continuous innovation and long‑term sustainability

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VUB High-Level Architecture

External providers

Core services

API

Integration

Branches / Head Office

Call Center

Web / Mobile

Master Data

Accounting

Frontends

Middleware and Processes

Backends and supporting services

Data

Cards

Payments

Risk

ECM

HR

Business Intelligence

Customer

Treasury

Lending

Hogan.CIS

Hogan.ILP

Online

Process management

Batch

Support

Deposits

Hogan.IDS

Hogan.PAY

Transactions

Data Warehouse

Datamarts

Big Data

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VUB Core Banking – HOGAN

VUB Core Banking

    • The crucial component is HOGAN (by DXC)
      • Running on a mainframe
      • Not a monolithic system
    • HOGAN covers:
      • Deposits and loans
      • Payment processing (supporting modules developed in-house)
      • Integration between the mainframe and the rest of the IT landscape
    • Although HOGAN is a legacy system:
      • It provides strong and stable foundation
      • It enables evolutionary modernization without blocking business delivery

HOGAN modernization roadmap

    • Upgrading so-called Umbrella, the layer between HOGAN modules and OS
      • Already completed
    • Upgrading Deposit (IDS) and Lending (ILP) modules to the latest versions
      • Under way
    • Potentially using the latest functionalities:
      • New built-in functionalities
      • APIs enabling new and simplified integration of IT landscape to HOGAN data and functionality
      • Multi-Entity Implementation VUB CZ

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Decoupling

    • GL
    • Payments
    • Statements

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    • Mortgages
    • Collaterals
    • Securities

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VUB Core Banking – Key Points

Strong core

  • The strong core is an asset, not a limitation: HOGAN continues to evolve, supports upgrades, and remains a competitive advantage even with significant in‑house development.

Stable core

  • Keep the core stable, decouple the rest: Strengthen HOGAN as a reliable core while progressively decoupling some capabilities (GL, Payments, Mortgages, Securities, Collatelars, Statements, etc.) using modular architecture and clear domain ownership.

Evolution

  • Evolve, don’t “big‑bang”: Modernize the core through controlled upgrades and incremental changes, avoiding “stop‑the‑bank” risk while continuously delivering business and regulatory requirements.

Integration

  • Modern integration enables flexibility: Our core is fully integrated using established integration patterns and is ready to integrate with modern platforms enabling scalability and multi‑entity reuse.

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Strategic partnership

  • Own the strategy, partner on delivery: Successful modernization requires strong internal IT ownership combined with selective vendor and partner collaboration (DXC for HOGAN Core)

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Modern Core Banking Transformation:

Evolution through Decoupling

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Modern core banking transformation leverages existing systems through functional decoupling, modular architecture and platform focus, supported by strategic vendor partnerships that enable continuous innovation and long‑term sustainability.

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Q & A��Thank you