ERI provides comprehensive banking software solutions through its digital platform, OLYMPIC Banking System. Fully integrated from front to back and configurable, the platform supports banks and financial institutions in digitising core activities across the client lifecycle, automating complex processes and connecting to external ecosystems through an open, service-oriented architecture.
Today, Hubfinance speaks with Fabian Klar, Regional Sales Manager at ERI, who brings over 15 years of experience across the financial and technology industries, including senior roles within financial infrastructures and major technology providers operating in the regulatory space. He currently covers the Benelux, Nordic, Baltic and South-Eastern European markets.
Drawing on this experience, Fabian examines why core banking transformation is no longer an isolated technology programme, but a strategic business priority that will shape financial institutions for the next decade and beyond.
As revenue models evolve, financial services become embedded in third-party journeys and technologies converge at increasing speed, the central question is no longer which innovation will dominate. It is whether banks have built an organisation and a technology backbone capable of adapting continuously.
Why has core banking transformation become a strategic priority for financial institutions?
Core banking transformation is no longer primarily an IT initiative; it has become a strategic business imperative because banking itself is undergoing fundamental change. More precisely, core transformation is not an end in itself. It is the enabler of business model transformation.
One of the most significant shifts is the move from balance-sheet-driven banking towards more diversified, fee-based revenue models. European households currently hold more than €10 trillion in savings, with approximately 90% of that amount sitting in bank deposits. Both the European Commission and the European Central Bank view this as an underused source of investment capital. If European households gradually invested more like their US counterparts, up to €8 trillion could eventually move into capital markets, generating around €350 billion in additional annual investment for the productive economy.
For banks, this represents a major opportunity. Rather than acting mainly as distributors of third-party investment products, many institutions will increasingly seek to incorporate investment services into their own value proposition. This can create more stable fee income, reduce dependence on interest margins and support better customer outcomes, while contributing to Europe’s long-term economic growth.
At the same time, three technology-driven transformations are reshaping the industry.
First, the rapid growth of embedded finance is changing how financial services are distributed. Payments are already widely embedded in digital customer journeys; lending and insurance are following, and investment advisory is likely to be next. In many cases, digital platforms will increasingly own the customer relationship, while banks provide the regulated financial products, execution capabilities and risk management behind the scenes.
Second, artificial intelligence is adding a powerful new dimension. It can enable greater automation, more personalised advisory services, stronger risk management and significant operational efficiencies.
Third, digital assets and tokenisation are creating entirely new possibilities across payments, investments and securities processing. Tokenised securities, stablecoins, programmable payments, central bank digital currencies and new forms of digital value exchange could progressively move into mainstream banking.
These developments share one defining characteristic: banking is becoming more connected, more digital and more dynamic. Institutions therefore need platforms flexible enough to support new revenue models, integrate seamlessly with external ecosystems and continuously absorb future innovation.
In the past, banks modernised their technology to support their business model. Today, they must modernise their business model and technology is what makes that possible.
Where should banks invest first when beginning a transformation of this scale?
Banks should not begin by asking, “Which technology solution do we need to acquire?” They should begin by identifying the capabilities required to execute their business strategy over the next decade and beyond. Given the scale of the investment, a new core system should be expected to remain in service for well over 15 years.
Once that strategic direction is clear, the priority should be the organisation’s digital backbone: a modern architecture, trusted and accessible data, automated end-to-end processes, real-time capabilities and open integration through APIs.
These investments may be less visible than launching a new customer-facing application, but they create the flexibility that allows banks to introduce products and services more rapidly, collaborate efficiently with specialist providers and respond to changing market conditions and regulatory requirements.
The comparison with a building is useful. Most people admire the architecture above ground, but its long-term strength depends on the foundations hidden beneath it. Banking transformation is no different.
The greatest return on investment does not come from technology alone. It also comes from building an organisation that is ready for whatever comes next.
Why do some transformation programmes succeed while others fail?
Technology is rarely the main reason a transformation programme succeeds or fails. Successful programmes begin with a clear business vision rather than a technology objective. They first define what kind of bank the institution wants to become, then align the transformation of the business, operations and technology around that shared ambition.
One frequently underestimated factor is the selection of the core banking platform itself. Too often, decisions are influenced by historical relationships, organisational politics or familiarity with existing vendors. Those considerations may be understandable, but they can lead an institution to select a platform that reflects yesterday’s priorities rather than tomorrow’s opportunities.
Banks should therefore conduct objective and unbiased evaluations of the available solutions. The decisive question is not whether a platform resembles the current environment, but how effectively it supports the bank’s target business model, strategic ambitions and long-term growth plans.
Another common mistake is to define success as reproducing existing banking operations on a modern platform. That should never be the objective. Transformation offers a rare, perhaps once-in-a-career, opportunity to improve operational efficiency, redesign customer journeys and fundamentally reconsider how the institution creates value.
The programme should be designed around the capabilities the bank will need in 2030 and beyond, not around reproducing the organisation it has today.
Which technologies will have the greatest impact on banking over the next five years?
Artificial intelligence is undoubtedly attracting the greatest attention, but the most important transformation will come from the convergence of several technologies rather than from AI alone.
Cloud deployment, real-time processes and data architectures, intelligent automation and API-driven ecosystems will fundamentally change how banks build and deliver financial services. Together, these technologies allow institutions to become significantly more agile and integrate specialist capabilities without having to develop everything themselves.
Digital assets and tokenisation will also move progressively into mainstream banking. Whether through tokenised securities, stablecoins, programmable payments, central bank digital currencies or other forms of digital value exchange, these technologies could reshape parts of the financial industry in much the same way that electronic payments transformed banking over the past two decades.
The next generation of banking will not be defined by who has the best AI models. It will be defined by who has built a bank capable of absorbing and leveraging the continuous innovation.
What advice would you give to CEOs beginning their transformation journey today?
Start with the business strategy, not the technology and start now. 2030 is not far away.
The first question should be: “What kind of bank do we want to become over the next ten years?” It should not be: “Which core banking platform should we implement?” Technology decisions must support the business vision, not define it.
Once that direction is clear, institutions should select technology partners objectively, invest in an architecture that can evolve over time and build a programme that encourages continuous improvement rather than one-off change. Transformation is not a project with a fixed end date; it becomes an organisational capability.
Banking is simultaneously experiencing profound changes in revenue models, customer distribution, technology and regulation. No executive can predict every innovation that will emerge over the coming decade. The institutions that succeed will therefore not necessarily be those that make the best predictions, but those that build organisations capable of adapting continuously.
Building the Bank of 2030 is not about predicting the future. It is about building an institution, underpinned by technology, that has the foundations in place to be ready for it.
Why ERI is helping financial institutions prepare for continuous change
In an environment where banking models, customer expectations, technology and regulation are evolving simultaneously, ERI positions OLYMPIC Banking System as a digital foundation for transformation. The platform combines front-to-back integration with configurable workflows, real-time capabilities, cloud readiness and connectivity through APIs, helping institutions automate complex processes, manage risks and control costs while retaining room to innovate.
Some 400 banks and financial institutions in more than 60 countries have trusted ERI over the past 30-plus years. This international footprint spans private, retail, commercial and central banks, credit unions, custodians, fund administrators and brokerage businesses — reflecting the breadth of operating models that a modern banking platform must support.
ERI is an active member of the Hubfinance community.
Would you like to connect with Fabian Klar or the ERI team?
Connect with Fabian Klar on LinkedIn or follow ERI on LinkedIn for further insights into banking transformation.
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