CIBC, one of Canada's largest banks, has signed a multi-year agreement to use UK firm Thought Machine's Vault Core platform as the foundation of its retail banking, Finextra reports. The bank has already used the platform to build its Simplii account in under a year, with folders and automated savings goals. CIBC will gradually modernise its core systems, aiming for real-time capabilities such as instant payments. It also confirmed it was the bank behind a £30 million investment in Thought Machine in July.

What it means: Replacing a core banking system is one of the hardest and most expensive projects a bank can take on, because it covers the accounts, balances and transactions of millions of customers. Many large banks still run on decades-old systems that slow the launch of new products and make instant payments harder. CIBC's approach is typical of the trend: start with a new product under a separate digital brand, test it, and then move other functions over gradually, rather than attempting a risky switch all at once. The bank's stake in its supplier shows how strategic it considers the relationship. Greek banks have invested in digital transformation in recent years, but the EU-wide obligations for instant euro payments, the future requirements of the digital euro and the DORA resilience regulation are pushing for modern, flexible infrastructure. For software firms and IT consultants, such projects create demand for data migration, systems integration and testing. The risk remains high, as past migration failures have left customers unable to access their accounts for days.

Read the original on Finextra

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