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The majority of banks run on outdated core systems, forced to add layer after layer on top of opaque legacy infrastructure. The outcome? A nicer-looking front-end at the cost of added complexity, heightened risk and millions in investment.

This ‘lipstick on a pig’ approach is not only costly but makes it increasingly difficult to take on the nimble challenges. It’s a heavy price to pay for relying on old systems.

While banks understand the threat, and the strategic importance of change, many struggle to address it. Yet contrary to how the industry has operated for decades, new cloud technology, APIs and ecosystems allow institutions to mitigate risks, test models and implement in a controlled environment.

Now is the time to make the switch.

  • wait

    Wait & see:

    Retain the existing system with current functionality in the short term, follow market leaders to determine the next upgrade step.

    💰💰💰💰: TSB’s core banking platform costs $130 million annually. Annual maintenance varies per bank.

    Risks: While others innovate and wow their customers, wait and see can only ensure one thing, a slow road to ruin and irrelevance.

  • replace

    Rip & replace:

    Replace the existing core platform with a new solution and justify the risk. Requires a higher initial investment.

    💰💰💰💰: A full-service retail bank transformation could cost anywhere between $300 and $400 million.

    Risks: Implementations can take years, unplanned costs are common and banks risk building a legacy technology of tomorrow.

  • buy

    Buy a challenger:

    Search the market for challengers performing well and purchase the business in order to jumpstart a move into digital banking.

    💰💰💰: In 2014 BBVA, the Spanish multinational, acquired the US-based personal finance app Simple for $117 million.

    Risks: Finding a company with the right fit for the existing business can prove difficult. An expensive option and few are for sale.

  • evolve


    Implement a parallel core by breaking the core into components and enable capabilities one at a time.

    💰: A true SaaS banking platform’s per-user pricing model will fall within a range of $400 000 - $ 1,5 million per year.

    Risks: This approach means new technology and new mindset. Banks have to learn to become tech companies.

Fast speed to market: a parallel bank can be launched in months, and even weeks.


Significant cost reduction: fewer resources to go live and low maintenance costs.


Low-risk and highest levels of security: no major risky releases means no downtime.


Provide a best-in-class customer experience and grow and scale rapidly.



In 2016, faced with the arrival of innovative fintechs and bigtechs, ABN AMRO began looking for ways to position itself for the future, and decided to evolve and augment.

Within 10 months it launched New10 - a digital lending speedboat that targets small and medium-sized enterprises.

New10 is run as a parallel core alongside ABN AMRO’s legacy core. The lender took a cloud-native approach, based on a serverless architecture and principles of composable banking - the rapid and flexible assembly of independent, best-for-purpose systems. By deploying on Amazon Web Services, New10 benefitted from instant scalability and elasticity, reduced operational effort and automation.

Having been positioned next to ABN AMRO, New10 accesses the best of two worlds - the speed and agility of a fintech and the financial expertise, and resources of ABN AMRO. New10’s proposition has been highly appreciated by customers, resulting in a staggering NPS of 60+.

Cloud technology has eliminated the need for businesses like ours to build and maintain their own systems. From the start New10 has been independent from ABN AMRO and operated like a tech company. Running on Mambu not only enables us to focus on scaling and innovation, but it also is a great cultural fit.
Kirill Kolyaskin
Head of Enterprise Engineering

Ready to move fast and make things? Get ready to build, deploy and repeat with the composable banking advantage.

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