BANCOS announces a new generation of its core banking platform

Why did we decide to develop BANCOS Core Banking from scratch?

Christian Binderbauer, CEO BANCOS AG: It all began with a fundamental decision: should we modernise our existing core banking system step by step – or build it from scratch? We gave both options serious consideration.

The outcome was clear. Only a completely new development would allow for state-of-the-art technology, integration of AI and modern infrastructure, while delivering what banks need today: a core banking system that operates cost-effectively and ensures best control over their data. These critical outcomes could not be achieved on a modernised legacy platform.

What will set the new generation of BANCOS Core Banking apart?

There are three key aspects in particular. Firstly, the architectural approach: the new BANCOS Core Banking is a lean, ‘headless’ platform that provides all services via modern interfaces. Front-end interfaces for customers and staff are provided by our partner – or the bank can integrate applications of its choice. In this way, BANCOS is returning to its core strengths: we handle banking operations in the back-end in accordance with all legal and regulatory standards, whilst collaborating with specialists on the customer-facing touchpoints.

Secondly, the product functionalities: the platform covers the key banking services – deposits, current accounts and cards, as well as loans. These product modules will be rolled out in stages from the second half of 2026 through to 2027. BANCOS Core Banking will continue to evolve and will cover functionalities in both retail and business banking.

And thirdly, a key principle underpinning this is: “one BANCOS for all customers”. A shared code base enables us to develop functionality that benefits all banks equally – and to do so in significantly shorter release cycles. The platform will require very little integration with the user bank’s existing systems. This significantly reduces the duration, costs and risk of implementation projects.

What technological decisions did we deliberately make during the development of this new product?

Two decisions were fundamental – and both contribute to the same goal: the bank’s autonomy.

The first concerns operations. The new BANCOS Core Banking system runs on the bank’s own cloud infrastructure – based on the principle of “Your data remains your data”. All cloud providers offering Kubernetes and PostgreSQL are supported: alongside the US hyperscalers, this explicitly includes European providers such as StackIT. This open approach was a deliberate choice. It enables banks to set up their core banking infrastructure independently – particularly with a view to the era of AI-driven ‘intelligent banking’, in which control over one’s own data is becoming a strategic issue.

The second decision concerns the development approach. Rather than overhauling and technically modernising the legacy system platform, we have developed it from scratch. Proven functionality from the previous generation has not been lost in the process. Every new feature is tested against the established functions of its predecessor. In this way, we are transferring more than 35 years of core banking expertise into a modern architecture – without losing the level of technical maturity that has been built up over this period.

What principles do we use to guide our development as a whole?

We have defined four guiding principles for the new generation of our core banking system:

• A cloud-native and AI-ready tech stack – as the foundation for intelligent banking.
• Fast time-to-market through easy integration – enabling new offerings to be launched more quickly, with minimal project effort.
• Transparent, usage-based operating costs – predictable and fair, rather than rigid licensing models.
• A significant contribution to digital sovereignty – control over technology and data remains with the bank.