Iterative transformation to modern banking software

After the provider’s support had to be classified as a risk, the bank acquired the implementation sources in 2011 and commissioned itestra with the maintenance and further development.
Within just two months, itestra assumed full responsibility for implementation , both in terms of maintaining the functionalities and the urgently needed technical modernization.
As a first step in the modernization, a new build and development environment with a new test procedure was implemented and 0.5 million unused lines of code were removed in just 4 weeks.
In the following months, high-priority errors were quickly eliminated on this improved basis and urgent open requirements were implemented at short notice.

For the further transformation of the solution into a modern, Java- and service-oriented target image, various renovation strategies such as client-first, opportunistic and active managed, and evaluated in terms of costs, benefits, duration and risks. A new development of the system from scratch as well as a new purchase and customizing were also examined, but were ruled out due to the specific requirements and therefore expected costs and risks. The most suitable approach appeared to be incremental modernization over a longer period of time, in which functionally grouped function blocks are gradually transferred to the target architecture and the solution in its old form is gradually dismantled. Old and new components coexist in a mixed operation – but there is no costly parallel development or parallel operation. The strategic transformation plan was deliberately designed for a period of 10 years due to the scope of the system, the available budget and the expected specialist requirements. The transformation begins with an“opportunistic” phase, i.e. components for which there is a business need for change are transformed first. This creates a synergy between technical modernization and functional development and new requirements, such as SEPA, FAIT and foreign currency capability, can be implemented on schedule. The second phase of the transformation, on the other hand, is actively managed and ensures that components that do not require any technical changes are successively transformed into the target system and that the target image is completed without compromise at the end – without any remaining components of the legacy environment.

The legacy system was completely transformed by this systematic redesign. The amount of code was reduced from 1.8 million lines of COBOL plus PowerBuilder to just 1.2 million lines of Java. The functionality of the old system was not only completely retained, but was even significantly expanded. The 1.2 million lines of Java now also cover all the legal and technical requirements of the bank over the past 10 years. The modernization halved the costs and time required for further development. Performance was significantly improved and all open bugs were fixed.
The modernization of the solution strengthened the bank’s position as a leading provider of digital banking services, ensuring long-term success and opening up new opportunities for the future. During the project period, the direct bank’s assets under management increased from €17 billion to €65 billion.