Modernize your core banking infrastructure with Red Hat

Digital expectations require a modern core infrastructure

Faced with growing competition and change, banks must transform their business to remain relevant and successful. In fact, 92% of banks are accelerating or planning to accelerate digital transformation of business services in the next 6-12 months.1 Core banking system modernization can help you deliver fast, personalized digital experiences to differentiate your business in an increasingly commoditized market.

Modernize your core banking systems with Red Hat

Core banking modernization is an ongoing journey, rather than a single transformative act. Many banks start their journey by deploying cloud-native, container-based infrastructure. Correspondingly, 60% of banks plan to increase spending on cloud computing and storage in the next year.

Red Hat can help you transform your core banking systems more efficiently and with less risk. Red Hat simplifies your modernization journey with enterprise open source infrastructure that lets you access modern methodologies and innovate at scale. Red Hat® hybrid cloud solutions provide advanced DevOps and cloud-native tools, cross-infrastructure portability and scalability, and the ability to run both existing and cloud-native applications. These modular solutions let you deploy the components you need, integrate with existing systems, and expand as needs change. You can also customize your installation with certified partner products, leading core system solutions, and open source technologies. 

Each solution component provides key capabilities for your modernization journey.

  • Red Hat OpenShift® is an enterprise-ready Kubernetes container platform with full-stack automated operations to manage hybrid cloud and multicloud deployments. It is optimized to improve developer productivity and promote innovation. Available for Red Hat OpenShift at no additional cost, Red Hat OpenShift Service Mesh gives you a uniform way to connect, manage, and observe microservices-based applications.
  • Red Hat Runtimes is a set of products, tools, and components for developing and maintaining security-focused cloud-native applications. It offers lightweight runtimes and frameworks for highly-distributed cloud architectures like microservices.
  • Red Hat Integration is a comprehensive suite of integration and messaging technologies that connect applications and data across hybrid infrastructures. Within Red Hat Integration, Red Hat 3scale API Management allows you to share, secure, distribute, manage, and monetize your application programming interfaces (APIs) on an infrastructure platform built for performance, customer control, and future growth. Red Hat AMQ is a flexible messaging platform that delivers information reliably, permitting real-time integration and edge connections. Red Hat Fuse is a distributed, cloud-native integration platform that uses an API-centric, container-based architecture to decouple services, allowing them to be created, extended, and deployed independently.

Core banking modernization approaches

There are three main approaches for modernizing core banking services: extend, renew, and reinvent. Many banks deploy a combination of these approaches during their modernization journey.


The “extend” approach adds new interface layers to existing core banking services, making them easily accessible to other cloud- and microservices-based applications through APIs. The architecture of the existing service remains largely unchanged, allowing you to protect your existing investments while applying new innovation and methodologies to your data. 

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Figure 1. The extend modernization approach adds new interface layers to existing core banking services.


The “renew” approach incrementally replaces existing core banking services with new, software-based versions from independent software vendors (ISVs). The new version of the service is deployed on cloud-based infrastructure and may also use a microservices architecture. Over time, these new services will completely take the place of your traditional core systems.

image container

Figure 2. The renew modernization approach replaces existing core banking services with new, cloud-based versions.


The “reinvent” approach incrementally replaces existing core banking services with cloud-native, microservices-based versions running in an agile service mesh. Over time, cloud-native services will completely replace your traditional core banking systems, allowing you to take full advantage of the flexibility, control, and efficiency of containers, Kubernetes orchestration, and microservices. 

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Figure 3. The reinvent modernization approach replaces core services with cloud-native, microservices-based versions.

Red Hat hybrid cloud solutions provide a consistent, adaptable foundation for all three approaches, whether used separately or together in any order. You can choose your own path and pace, knowing your Red Hat infrastructure will reliably support your needs.

Key Red Hat solution benefits for core banking modernization

Benefit Details
Accelerate application development and launch.

Speed development with built-in automation and CI/CD pipelines.

Quickly provision developer resources via self-service and automation.

Accelerate development with API and microservices that let you connect and reuse services more easily.

Increase operational efficiency.

Run more containerized workloads on each server to cut hardware costs.

Manage resources across your hybrid cloud and multicloud environment in the same manner with a consistent foundation.

Boost service resilience.

Deploy applications across multiple infrastructures consistently to increase reliability and redundancy while optimizing costs.

Control software versions and updates to ensure reliable operation.

Build more engaging customer services.

Gain insight and personalize services in real time using artificial intelligence (AI) and machine learning (ML) capabilities, hardware accelerators, agnostic runtimes, and container integration.

Create easy-to-use applications for on-demand customer services.

Schedule a discovery session to learn more:

Harvard Business Review, sponsored by Red Hat. “Modernizing Core Systems Has Become a Business Imperative,” December 2020.