The Spanish financial services company Banco Santander is to transition fully to a cloud-based core banking system.
The core banking platform forms the most critical part of a bank’s IT infrastructure, being where the main financial transactions, such as money transfers, deposits and loans, are processed. Santander has become one of the first major banks to venture down the digital rabbit hole, having placed around 80 per cent of its current IT infrastructure and core banking system on the cloud.
To facilitate the full transition, Santander has deployed a bespoke software called ‘Gravity’. Developed in-house, the software is set to enable the complete transition of the core banking to the cloud and will play an essential role in modernising the bank’s core banking system.
The core banking benefits of the cloud
Cloud-based core banking systems are recognised for their improved access to data, wider simplicity and a faster time-to-market cycle. Such systems are capable of delivering new capabilities and app updates with a much faster turnaround time than offered by traditional systems while helping the bank drive value using real-time analytics.
This change will also reduce the cost of running the core banking platform. Santander expects to complete this transition in all its core markets and businesses within two to three years.
“Gravity will help transform Santander into a ‘digital-native’ company, with the agility and capabilities to offer the best customer experience, while continuing to provide the solid security for data and assets we’ve always delivered our customers,” explains Dirk Marzluf, chief operating and technology officer at Banco Santander.
“The initiative is an important next step in the bank’s transition to a common tech stack that is utilised across the group’s footprint for the benefit of both customers and shareholders. We are now closer to Santander’s aim of becoming the best open financial services platform.”
Santander’s cloud platform has been built upon the capabilities of both its in-house and third-party providers. This gives Santander’s 16,500 software developers and engineers a modern, high performing environment to create customer-centric applications and increases the bank’s ability to attract top talent.
Santander’s cloud programme is also set to lower the bank’s energy consumption for the IT infrastructure by 70 per cent, contributing to Santander’s responsible banking targets.
