The Future of Technology in Finance: Roadmap for IT Architectures and Infrastructures (Hochschule Luzern (HSLU))

Summary

• Advances in digital infrastructure, AI, cloud computing and data analytics are reshaping how financial services are designed, delivered and regulated, making IT architectures key strategic assets.p.3
• In 2023 approximately 84 percent of the Swiss population used online banking.p.6
• Among retail banks in Switzerland, only seven percent regard the metaverse as highly important, while 78 percent rate its importance as low or non-existent.p.6
• Apobank in Germany spent about EUR 800 million on migrating to Avaloq's core banking solution.p.10
• Agile methods and DevOps have reduced dependency on rigid release cycles traditionally limited to two per year.p.8
• The baseline scenario assumes an evolutionary modernisation of existing IT landscapes rather than fundamental replacement.p.12
• Established and neo core banking platforms are compared on functionality, economic efficiency, security, modularity and data sovereignty.p.13

Key insights

1. Most Swiss banks follow an evolutionary path of modernisation, adding modular components and open interfaces to existing systems.p.12
2. Banks must demonstrate data portability, resilience and credible exit strategies to avoid overreliance on hyperscalers.p.8
3. Compliance spans AML and CTF, KYC, data protection and prudential standards such as Basel III/IV.p.10
4. Decoupling platforms expose core functions such as payments, lending or investments through APIs and event streams.p.14
5. Many institutions segment their cores into modular mini-cores, as illustrated by JPMorgan Chase's approach.p.14
6. Data sovereignty requires banks to manage data centre location, third-party involvement and cross-border data flows.p.11