How can financial institutions undertake comprehensive digital transformation while minimizing disruption, maximizing efficiency, and controlling costs? Should they adopt greenfield approaches, deploying entirely new technology stacks from the start? Or should they embrace progressive modernization, optimizing and maintaining existing core systems, selectively migrating components to the cloud to leverage emerging tech?

Yoter Up champions progressive, mainframe-centric core application modernization as a key pillar of digital transformation. Our team specializes in sustaining operational resilience on-premises while innovating around core banking systems. With deep expertise in Hogan core banking applications, Yoter Up’s professionals expertly manage and modernize this critical infrastructure for our clients.

Hogan has supported the banking industry for over 40 years, serving as the primary core banking platform for more than 40 banks and card processors worldwide. Currently, Hogan processes over $5 trillion in deposits, ranking it among the largest and most reliable core banking systems globally.

The Hogan ecosystem offers diverse platform options including z/OS, Linux, Linux for System Z, Windows, or hybrid combinations. This flexibility enables banks to select cost-effective environments that balance high availability, scalability, robust data security, and other essential attributes.

The pandemic accelerated the shift from physical branches to digital banking. Many traditional banks now prefer hybrid cloud strategies to manage growing digital workloads, retaining their trusted mainframe-based core systems while integrating cloud solutions. This ensures seamless alignment between legacy and new platforms, improving customer experiences while leveraging public and private cloud resources wisely.

While fully migrating to cloud can be risky and expensive, hybrid cloud models let banks secure sensitive data in private cloud infrastructures while shifting less sensitive workloads to flexible, low-cost public clouds.

Hybrid cloud adoption delivers multiple benefits, including:

1. Enhanced business agility: Accelerate innovation by failing fast and iterating rapidly.
2. Unlocking capital: Release funds trapped in inactive infrastructure, transitioning from CapEx to OpEx.
3. Scalable operations: Expand computing resources seamlessly to match demand.
4. Increased productivity: Benefit from intuitive, user-friendly dashboards.
5. Superior user experience: Elevate customer communication and engagement.
6. Stronger partnerships: Foster collaborative, efficient relationships with partners.

As Yoter Up’s clients move to hybrid cloud environments, DevOps plays a pivotal role by boosting agility, automating lifecycle management, and enabling impact-free deployments. Emerging cognitive systems further enhance automation by intuitively optimizing financial customer experiences.

Migrating complex legacy core banking systems involves significant risk. Outdated, fragmented architectures and data silos complicate migration, and any data loss during transition could have catastrophic consequences. Additionally, recruiting skilled talent for integration and adoption is competitive and difficult.

Competing with nimble fintech firms and neobanks—equipped with modern cloud-native systems—requires traditional banks to leverage hybrid cloud benefits effectively to retain market share and innovate faster.

Running legacy systems is costly and resource-intensive, with slow straight-through processing (STP) and manual upgrades draining IT capacity. Tackling technical debt head-on by embracing mainframe hybrid cloud solutions results in faster delivery of innovative products, lower total cost of ownership (TCO), and increased operational efficiency.

Hybrid cloud strategies combine private, public, and community clouds to create tailored solutions driving revenue growth and competitive advantage.

Siloed customer data hampers banks’ ability to deliver personalized services. Hybrid cloud modernization enables a 360-degree customer view, facilitating faster and more agile user engagement.

The future of banking innovation depends on transparent ecosystems and cloud-enabled hyper-connectivity. Hybrid cloud architectures foster experimentation and speed, enabling seamless collaboration across multiple stakeholders.