The great bank migration to the cloud is happening at speed. A study commissioned by Google shows that 83% of financial institutions are deploying cloud technologies as part of their primary computing infrastructures.
This migration enables banks to avoid the expensive, upfront capital expenditures required to build or expand a data centre. It gives them virtually unlimited scalability. And it allows them to develop and deploy new financial products much faster than they could with their legacy systems.
The advantages of cloud-based systems are so significant that banks cannot compete successfully with fintechs without adopting this technology.
Cloud-based banking comes of age
The most advanced cloud-native platforms for banking and payments have matured and become very robust in the last few years. The Pismo platform, for example, manages 50 million bank accounts and processes 170 million transactions monthly (May 2022). It has undergone demand peaks like the last Black Friday flawlessly.
So banks don’t need to start from scratch when building a cloud-based core banking or card management system. They can start with a platform like Pismo, making the implementation faster and easier.
Furthermore, we charge financial institutions based on their number of active accounts. Hence a bank can run our solution alongside its existing software without prohibitive costs. This arrangement enables a gradual migration of accounts, reducing risks and allowing time for the training of the bank’s technical team.
Our account migration tool kit
For years, Pismo has been working with some of the largest banks in Latin America, and now we are expanding our operations globally. We developed a tool kit to help these banks move their accounts to our cloud-native core banking system. We will have migrated seven million accounts with this toolset by this year.
Our migration tool kit comprises microservices that enable communication with the bank’s existing core banking or card management system through APIs. These tools transfer data from the bank’s legacy system to the Pismo platform.
Financial institutions can migrate customer information, transaction data, accounting registries, and regulatory details separately with our APIs. The bank also can send us files containing the data to be migrated, which is convenient when moving large amounts of data.
Migration integrity is a sensitive topic. Thus our migration process gives visibility to the customer in real-time during all the steps of this process. The customer can monitor everything happening inside our platform (cards, accounts, transactions, and other transferred data) during and after the operation.
Whichever the chosen method, the bank has total control over the information being transferred.
Credit cards migration
Our migration tools have transferred millions of credit card accounts from legacy systems to the cloud. Many fintech companies receive credit card authorisations through a Bank Identification Number (BIN) sponsor. In these cases, the best solution is usually to migrate all the cards related to a specific BIN at once.
For financial institutions that receive authorisations from a card network directly, there is also the option of transferring the cards corresponding to a BIN in several batches. This partial transfer allows a large card base to be migrated gradually.
To enable this partial migration, we developed an authorisation redirector. With this software, the bank’s existing card management system continues to get the authorisations from the card network during the transition to the cloud-based platform.
If the redirector is active, when the Pismo platform starts processing a credit card payment, it forwards the authorisation request to the bank’s legacy card management system. When this system receives the authorisation, the redirector sends it back to the cloud-based platform, which completes the transaction.
The authorisation redirector is, of course, a temporary arrangement. When all the cards related to a BIN have been transferred, it’s turned off, and the Pismo platform starts getting the authorisations itself. Then the bank can leverage all the benefits of the cloud-native system.
Talk to our experts about migrating your banking systems to the cloud.