EP87: Operating model for core banking center of excellence

The Core Banking System (CBS) life cycle has two phases: implementation and post-implementation, each requiring a distinct Centre of Excellence (CoE) operating model. Implementation is a major transformation, involving customization, process redesign and governance. Key challenges include prioritizing business requirements, ensuring service continuity, planning scalability and deciding on specialist skills. Best practices include CXO-level sponsorship, clear roles, dedicated teams, defined target operating models, agreed prioritization, strong system integration, robust data modelling and alignment with the vendor product roadmap.Post-implementation, the CoE must manage ongoing enhancements, support and cost efficiency without losing agility. Best practices include capturing lessons learned, retaining 20–40% of the implementation team, managing vendor transitions, structured release planning, global service delivery models and transparent cost allocation. Overall, an effective CBS CoE depends on bank size, complexity and strategy, supported by a structured assessment of IT capabilities and transformation goals.