Admin INCAT

The Hidden Cost of Legacy Core: Why African Banks Lose 12-18 Months Per Product Launch?

While fintech competitors launch products in weeks, traditional African banks face a different reality: 12–18 months from concept to deployment. This isn't a technology problem—it's a business crisis. According to KPMG's 2025 analysis, legacy system maintenance now consumes up to 64% of IT budgets at African institutions, leaving minimal capacity for innovation. The real cost? Market opportunities lost to agile competitors, revenue streams that never materialize, and customer relationships that migrate to platforms offering immediate, personalized experiences.

Legacy system maintenance now consumes up to 64% of IT budgets at African institutions, leaving minimal capacity for innovation.

Three Critical Bottlenecks Costing African Banks Millions

Every Product Change Requires Custom Development

Want to launch a salary advance product with automated fee waivers? On legacy cores, this triggers a 6-9 month development cycle: backlog prioritization battles, custom coding, comprehensive regression testing, and deployment during restricted maintenance windows. Nigeria's open banking framework exposed this perfectly—banks discovered that implementing Central Bank regulatory requirements meant multi-month development programs rather than simple configuration changes. By the time products launch, competitors have already captured the market.

Integration Architecture That Can't Scale

NCBA Bank Kenya's transformation tells the story. Operating on a legacy core banking platform, their M-Shwari mobile banking service served 35 million customers but struggled with peak loads and business development speed. In November 2020, they migrated to a cloud-native, microservices architecture. Results: system performance jumped from 60 to 420 transactions per second, they migrated 60 million accounts in one day with zero downtime, and gained the capability to expand across Tanzania, Ethiopia, and Ghana—operationally impossible on the legacy platform. The difference? Modern API-first architecture versus point-to-point integrations that turn every new partner into a mini-project.

Case Study Banks

60 → 420 TPS performance improvement                                    306% YoY payment volume growth

System performance jumped from 60 to 420 transactions per second—a 7x improvement that unlocked international expansion.

 

Batch-Era Design in a Real-Time World

Egypt's Instant Payment Network (IPN) and South Africa's PayShap demand 24/7 real-time operations. Banks on batch-oriented cores face a painful reality: customers initiate transfers expecting instant confirmation, but see delays because backend posting occurs on overnight cycles. The operational burden is crushing—support call volumes spike, complex reconciliation workarounds multiply, and fraud exposure windows expand. Meanwhile, banks on modern platforms post transactions immediately, provide instant confirmations, and avoid the operational complexity entirely.

What Market Leaders Are Doing Differently

If time-to-launch doesn't compress from quarters to weeks, the transformation is cosmetic.

 

The BOS Advantage: Built for African Banking Reality

BOS (INCAT) addresses exactly these challenges through architectural choices proven across African markets. Product configurability eliminates the development bottleneck—business teams define products through parameters, not code. API-first integration enables rapid ecosystem participation, from national payment switches to fintech partnerships. Cloud-ready deployment scales dynamically without infrastructure delays. Operational safety patterns ensure that faster delivery doesn't create risk exposure.

The practical impact: African banks implementing BOS shift from quarterly release cycles to continuous deployment, treating product launches as routine configuration changes rather than major programs. They participate effectively in real-time payment infrastructure—Egypt's IPN, South Africa's PayShap, Nigeria's instant payment rails—without operational compromises. Most critically, they compete on innovation velocity, launching products in weeks while legacy-constrained competitors remain trapped in month-long development queues.

The Strategic Choice: Transform or Fall Behind

The 2024 African Banking Digital Transformation Report surveyed 150+ banks across 35 countries and found that 60% have digitally transformed most operations. This creates a growing capability gap: modernized competitors iterate products weekly while legacy-constrained institutions wait quarters for deployment windows. With 76% of African banks ranking digital transformation as a top-three priority, the question isn't whether to modernize but how quickly transformation can occur given competitive pressures.

Every month of delay represents market share permanently ceded to faster-moving competitors.

 

Legacy platforms, regardless of historical success, increasingly prevent rather than enable competitive responsiveness. Every month of delay represents market share permanently ceded to faster-moving competitors. Modern platforms like BOS exist to unlock the innovation velocity that contemporary banking demands—transforming core banking from operational constraint into competitive advantage.

Key Statistics

12-18 months: Typical product launch timeline on legacy cores
64%: Portion of IT budgets consumed by legacy system maintenance (KPMG 2025)
60 → 420 TPS: NCBA Kenya's performance improvement post-modernization
76%: African banks ranking digital transformation as top-3 priority (Deloitte 2024)
306% YoY: Access Bank's digital payment volume growth (H1 2024)

 

BOS supports banks by enabling faster product configuration and rollout, providing a platform mindset that integrates cleanly with digital channels and external ecosystems, and supporting transformation paths that can be staged to reduce risk. The goal is straightforward: help banks move from “outdated core as a constraint” to “modern core as a growth engine,” while protecting continuity, trust, and compliance. If you're looking to migrate your core, explore how BOS can be the foundation of your success. Contact us to learn more! 

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References and Sources

1. Central Bank of Egypt (2022). Instant Payment Network Implementation Guidelines. Retrieved from official CBE documentation.
2. Central Bank of Nigeria (2023). Open Banking Framework and Regulatory Guidelines. Official regulatory publication.
3. Deloitte Africa (2024). Unlocking Africa's Banking Potential: Core Banking Modernization Imperatives. Industry research report.
4. EY South Africa (2024). Digital Adoption and the Next Wave of Transformation in South African Banking. Industry analysis.
5. KPMG East Africa and West Africa (2025). Modernising Core Banking Systems: Navigating Challenges to Achieve Resilient Transformation. Thought leadership publication.
6. African Banker and Backbase (2024). The African Banking Digital Transformation Report 2024. Comprehensive survey of 150+ banks across 35 African countries.
7. South African Reserve Bank (2023). PayShap Implementation Framework and Market Guidelines. Official regulatory publication.
8. TechCabal (2024). Nigeria's Tier-1 Banks Will Spend ₦82bn on Core Banking Software in 2024. Industry research and analysis.
9. Huawei Enterprise (2020). NCBA Invests in Inclusive Finance: Kenya's First Distributed Core Banking Deployment. Case study documentation.
10. Access Holdings Plc (2024). Annual Report and Financial Statements. Corporate disclosure documents.
11. McKinsey & Company, Forrester Research, and various industry analysts (2024-2025). Multiple reports on digital banking transformation, core system modernization challenges, and African fintech ecosystem development.

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by Admin INCAT

Core Banking in African Banks: Why “Outdated Core” Is a Growth Constraint?

Across Africa, banking demand is rising faster than many core platforms can evolve. Customers expect instant, mobile-first experiences; regulators push for stronger controls and reporting; ecosystems expand through payment switches, mobile money rails, agency networks, and fintech partnerships. In that environment, the core banking system stops being “just the ledger” and becomes the operating foundation for product speed, integration, resilience, and trust.

Yet many institutions are still running legacy cores that were heavily customized over years, layered with workarounds, batch jobs, and brittle integrations. The result is a technology stack that may still “work,” but increasingly works against the business: it slows launches, increases operational risk, and consumes budgets that should be funding growth.

The most visible legacy symptom: speed collapses as complexity rises 

When legacy core platforms become overly complex, launching a new product can take 12–18 months—a timeline that’s simply misaligned with today’s competitive, digital-first market. These delays are typically driven by years of accumulated customizations, reliance on costly on-premises infrastructure, and manual back-office processes that reduce agility and weaken the customer experience.

This “time-to-market tax” matters more in Africa than in many mature markets because customer segments are diverse and fast-moving: SME lending, micro-savings, payroll loans, agent banking, cross-border remittances, and tailored fee/interest models often need rapid iteration. If every change demands long development cycles, risky releases, and extensive regression testing, the bank’s ability to compete becomes structurally limited.

 

When legacy cores become overly complex, new product launches can take 12–18 months.

Budgets get trapped in maintenance, not transformation

 

Over 64% of banks’ global technology budgets may be spent maintaining existing legacy technology, leaving a minority for growth and transformation. 

 

The African-specific twist: ecosystem integrations are not optional

In many African markets, digital banking is inseparable from external rails and partners: national payment infrastructure, card switches, mobile money operators, agency networks, alternative data providers, KYC/AML utilities, and fintech product layers. When the core isn’t designed for API-first interoperability and near real-time processing, banks are pushed toward tactical add-ons, nightly batches, and manual reconciliation. Over time this increases fraud exposure, weakens data quality, and makes regulatory reporting harder—especially when data lineage spans multiple systems.

Industry surveys across the region underline the same strategic implication: banks want to use data to deepen relationships, improve targeting, and grow share of wallet, but legacy infrastructure remains a major obstacle to digital transformation. A pragmatic path many institutions follow is to modernize integration first—exposing core capabilities via APIs so new applications can share data and connect to third parties faster—while progressively upgrading the underlying core capabilities.

 

Banks want to use data to deepen relationships, improve targeting, and grow share of wallet, but legacy infrastructure remains a major obstacle to digital transformation.

The transformation paradox: everyone wants modernization, but nobody wants downtime

Core modernization is unavoidable—but it’s also high-stakes. Customers judge banks harshly for outages, failed transactions, and inconsistent balances. That risk is very real: when institutions migrate to new core platforms, transitions can be disrupted by service interruptions and system downtime, which quickly frustrate customers and erode trust.

That’s why modernization strategies in Africa increasingly favor staged migration, coexistence patterns, and rigorous resilience engineering rather than “big bang” replacements—unless the legacy platform is no longer viable.

What African Banks Actually Need From a Next-Gen Core

Modern core transformation programs succeed when they are anchored in business outcomes, not vendor features. In practice, the needs are remarkably consistent across regions and bank types.

Modernization must strengthen—not weaken—controls.

Real African Transformation Examples

Equity Bank (East Africa region): scaling multi-country operations and standardizing customer experience. Equity publicly described a core upgrade aimed at enabling seamless customer transactions across multiple countries and supporting faster rollout of offerings and new business lines. The bank positioned this as a way to improve customer experience while operating consistently across geographies.

 

Bank of Kigali (Rwanda): aligning core modernization with a digital-first customer vision. The bank has communicated its multi-year digital journey in a way that ties modernization to customer outcomes. In one official update, CEO Diane Karusisi described a vision “to give anyone, anywhere the best customer experience through digital,” reflecting how core capabilities underpin channel expansion, automation, and service design.

 

 

Guaranty Trust Holding Company / GTCO (Nigeria): delivering seamless, connected experiences across touchpoints. In public statements around its modernization program, Group CEO Segun Agbaje emphasized the strategic goal of enabling “seamless and connected experiences across every customer touchpoint,” linking core transformation to agility, scalability, and a digital future shaped by customer preferences for secure and convenient channels.

 

 

NBS Bank (Malawi): future-ready scalability and ecosystem integration. NBS Bank ran a formal initiative for implementing a new core system, signaling the strategic weight of the program. In a separate communication reflecting customer expectations, CEO Temwani Simwaka highlighted that clients “need seamless solutions, privacy, speed, and support they can count on,” which is exactly the bundle of outcomes core transformations are expected to unlock. 

 

FirstRand (South Africa): accelerating product launches and strengthening digital channels. Reporting on the group’s modernization direction has emphasized goals such as accelerating product launches and enhancing mobile and internet banking capabilities—an example of a large institution treating the core as an innovation engine, not merely a back-office platform.

 

These cases share a pattern: the trigger is rarely “technology for technology’s sake.” It’s usually a mix of customer expectations, product speed, operational resilience, and the need to integrate efficiently into a broader financial ecosystem.

A Modernization Approach That Fits African Reality: Transform Without Pausing the Bank

The most successful core programs typically combine ambition with controlled risk. That means doing the hard work in three areas that legacy platforms tend to obscure:

Data discipline.

Migration fails when institutions underestimate data quality issues, account history mapping, and reconciliation requirements. A modern core requires clean reference data, consistent product definitions, and robust audit trails.

Operational readiness.
A next-gen core is not only software—it changes processes, exception handling, and how frontline and back-office teams operate. Without redesigning workflows, banks simply “carry workarounds forward,” and the new platform inherits old inefficiencies.

Resilience engineering.
African customers are highly digital and increasingly unforgiving of outages. KPMG’s CX research in West Africa explicitly highlights how disruptions during transitions can frustrate customers and risk trust—so availability, safe cutovers, and rollback strategies have to be designed in from day one, not added near go-live.

BOS as the Platform for Practical Core Transformation

At Incat, we approach core transformation as a business acceleration program, not a single IT replacement project. BOS (Banking Operating System) is our core banking platform designed to help institutions modernize in a way that supports real-world constraints—regulatory demands, integration complexity, customer expectations, and the need to keep services running.

BOS supports banks by enabling faster product configuration and rollout, providing a platform mindset that integrates cleanly with digital channels and external ecosystems, and supporting transformation paths that can be staged to reduce risk. The goal is straightforward: help banks move from “outdated core as a constraint” to “modern core as a growth engine,” while protecting continuity, trust, and compliance. If you're looking to migrate your core, explore how BOS can be the foundation of your success. Contact us to learn more! 

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by Admin INCAT

5 Technological Foundations Every Fintech Should Master

The fintech revolution has entered a new era. The first wave — driven by design, user experience, and the “banking made simple” narrative — has evolved into a far more technical reality. Today, the ability to succeed is not determined by how sleek your app looks, but by how resilient, scalable, and intelligent your technology foundation is. 

Fintechs and digital banks across Europe, the Gulf, and Asia have already proven that the right tech strategy can make the difference between growth and gridlock. Below are five key technological areas that every emerging fintech must understand deeply — with examples of who did it right and why it worked. 

1. Data Architecture — Turning Real-Time Information into Market Speed 

In financial services, data is not just a byproduct — it’s the business itself. But data has little value unless it can be turned into real-time, actionable intelligence. 

The most successful fintechs — from Revolut in Europe to Tamara in Saudi Arabia — have built architectures that allow data to flow continuously across every layer of their systems. These are not just analytics dashboards, but event-driven ecosystems, where every transaction triggers insights and every insight drives a decision. 

In practice, this means moving beyond simple batch data warehousing toward streaming data pipelines and event processing. For instance, Revolut’s internal architecture uses Kafka-based streaming to power instant updates across millions of user wallets. This enables real-time fraud detection, personalized offers, and product testing with immediate feedback loops. A robust data architecture gives you control, speed, and foresight — the essential traits of a fintech built to last.

 

Data isn’t just the fuel of fintech — it’s the steering wheel. Without real-time intelligence, even the most innovative products drift off course. 

Source: Gartner

2. Architecture Agility — Designing for Change, Not Perfection 

Every fintech begins as an experiment. But only those that can evolve their technology without collapsing under the weight of growth manage to survive. 

Early-stage fintechs often build minimum viable products quickly, but they pay a heavy price later if that MVP rests on a monolithic architecture. Once users multiply and product lines diversify, that architecture becomes a bottleneck. 

Modern success stories prove that microservices-based architecture is not just a trend, but a survival mechanism. Each product component, from customer onboarding to payments and lending, exists as an independent module that can be scaled, upgraded, or replaced without touching the rest. 

At Monzo, over 1,500 microservices handle everything from card transactions to compliance reporting. That’s how the bank could expand to millions of customers without a single day of downtime. 

Similarly, D360 Bank, which operates on INCAT’s BOS system, embraced modular architecture from day one. The flexibility of BOS’s microservice structure made it possible to deploy updates frequently while keeping system stability intact.

For fintech founders, architectural agility means designing systems not for what you need today, but for what you can’t yet predict tomorrow. 

 

In fintech, agility is the new stability. If your system can’t change quickly, it will fail quietly.

Zdzisław Grochowicz, Chief Product Officer, INCAT

 

3. Compliance-by-Design — Transforming Regulation into a Competitive Edge 

Regulation is the most underestimated innovation driver in financial technology. The most forward-thinking fintechs treat compliance not as a constraint, but as a design principle. 

Embedding compliance at the system level — rather than bolting it on later — enables speed, scalability, and trust. Zopa in the UK and Starling Bank are excellent examples: they automated AML and KYC checks as integral parts of their onboarding process. Instead of slowing growth, compliance actually accelerated it — investors saw resilience, and customers saw reliability. 

In the Middle East, the stakes are even higher. Fintechs must align not only with financial regulations, but also with religious and ethical frameworks, such as Shariah principles. D360 Bank and STC Bank, both regulated by the Saudi Central Bank (SAMA), adopted compliance-by-design models from inception. By integrating Shariah governance rules directly into their product and transaction layers, they ensure every product — from savings to financing — automatically adheres to Islamic finance standards. 

In BOS, this principle is embedded at the core level. Compliance modules and rule engines are configurable, meaning fintechs can adapt to different jurisdictions or religious frameworks without re-coding their entire stack. 

When done right, compliance-by-design doesn’t limit innovation; it legitimizes it.

Compliance is not paperwork — it’s architecture. When regulation lives inside your code, innovation becomes unstoppable. 

Piotr Hanusiak, CEO of INCAT

4. Ecosystem Connectivity — Building Growth Through Integration 

No fintech thrives in isolation. The age of open banking has proven that connectivity is the currency of growth.  Fintechs built billion-dollar valuations by turning integration itself into a product. Their APIs connect banks, merchants, and consumers — not because they create new services, but because they enable collaboration. 

For emerging fintechs, API-first development should be non-negotiable. It allows seamless integration with payment gateways, KYC providers, fraud systems, and even national regulators. More importantly, it opens the door to partnerships that accelerate distribution and customer acquisition. 

Middle Eastern fintechs understand this shift deeply. D360 Bank’s BOS-based architecture, for instance, exposes a secure open API layer that connects easily to third-party systems — from digital identity verification to telecom billing services. This openness is a key factor behind its rapid ecosystem growth in Saudi Arabia, where collaboration across sectors (banking, government, telecom) is driving digital innovation at unprecedented speed. 

Fintechs that embrace open integration don’t just scale faster — they create value networks that grow around them. 

5. Core Banking System — The Technological Heartbeat 

Last but not least: your core. 

It’s tempting for fintech founders to see the core system as a back-office engine — invisible, static, something to “deal with later.” That mistake is often fatal. The core banking system defines how fast you can launch products, how flexible your pricing can be, and how easily you can expand across markets. 

Traditional cores, built for legacy banks, are slow to change and difficult to integrate. Fintechs need the opposite: cloud-native, API-driven, event-based systems that can evolve continuously. 

This is where platforms like BOS by INCAT stand apart. BOS was designed specifically for digital banks and fintechs — built with modularity, configurability, and regulatory adaptability in mind. The system supports multi-product portfolios, subscription-based pricing, and Shariah-compliant product structures, all on a single, scalable cloud environment.

Fintechs that underestimate their core architecture eventually face costly rewrites and technical dead ends. Those that choose scalable, flexible systems early, build the freedom to innovate for years to come. 

Your core is not your engine room — it’s your brain. It defines how you think, how you grow, and how your business learns. 

Kamil Orzechowski, Business Analyst, INCAT

6. What’s next?  

The next decade of fintech innovation will not be won by the fastest-growing startups, but by the most technologically disciplined. 

To succeed, founders must master five foundations: 

• Data as a real-time feedback loop,
• Architecture that adapts faster than regulation,
• Compliance embedded as code,
• Open connectivity as a growth multiplier, and
• A core system that turns vision into execution.
   

These are not theoretical ideals — they are proven success factors for global players and regional leaders.  

At INCAT, we see this transformation every day: fintechs that invest in smart technology foundations don’t just build digital institutions— they build financial ecosystems of the future. 

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BOS by INCAT offers more than just a next-generation core—it delivers a methodology and a team equipped to handle the entire journey from legacy to modern banking. For banks ready to make the leap, BOS provides the architecture, flexibility, and support needed to transform with confidence. The question isn’t whether your bank should migrate—it’s whether you're choosing a partner that can take you where the future is headed.
If you're looking to migrate your core, explore how BOS can be the foundation of your success. Contact us to learn more! 

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by Admin INCAT

Join us at Singapore Fintech Festival 2025

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by Admin INCAT

Can You Build a Banking Product Like a Puzzle?

In a world where agility is the name of the game, financial institutions can no longer afford to spend months — or even years —designing and launching new products from scratch. The ability to rapidly configure, test, and deploy financial products has become a critical competitive advantage. But how is this possible in a domain as complex and regulated as banking? 

Surprisingly, the answer lies in something as simple and powerful as modularity—or, to use a more relatable metaphor, building with puzzles.

What If Banking Products Were Modular? 

Imagine if instead of crafting every detail of a banking product by hand, product managers could assemble it from pre-defined, reusable components, simply just like a puzzle. In the BOS platform, that’s not a fantasy—it’s the everyday reality.

A Different Approach to Product Design 

In BOS, when defining a new product, you don’t design the entire process from scratch. Instead, you assemble it using existing functional widgets. It’s not just about setting product parameters like interest rates or maturity dates. You’re actually shaping the product’s logic and service flow by selecting the right components—such as repayment plans, disbursement methods, pricing models, customer notifications, etc. 

This approach allows banks and fintechs to: 

Launch new products in days or weeks, not months 

Ensure consistency and compliance across product lines 

Reduce development and operational costs

Quickly respond to market or regulatory changes . 

 

But how does this modularity actually work in the real world? That’s where Task Producer comes into play.

 

In BOS, when defining a new product, you don’t design the entire process from scratch.
Instead, you assemble it using existing functional widgets.  

 
The Engine Behind the Scenes: Task Producer

Think of the Task Producer as the orchestrator of your modular banking product. In BOS, products are not hardcoded—they are assembled from ready-made components. Each product line leverages a Task Producer that supplies predefined tasks and events, allowing the product to be built from modular widgets rather than the other way around.

For example: 

Opening a new loan? The Task Producer generates tasks for credit scoring, KYC verification, contract signing, and disbursement.

Updating a savings account? The Task Producer kicks off tasks like balance recalculation, interest rate application, and customer notification. 

Because the Task Producer operates based on pre-configured templates, it ensures that every instance of a product follows the correct logic and that all required actions happen at the right time.  It’s like having a conductor for an orchestra of banking microservices —each instrument (module) knows when to play its part, and the result is a harmonious, compliant, and efficient service. 

Real-Life Case: Subscription-Based Loan Product 

Let’s take a real example from a BOS client: a digital-first bank wanted to launch an innovative loan product that allowed customers to pay a monthly subscription fee instead of traditional interest. The goal was to attract a younger, digitally savvy audience looking for simple, predictable financial products. 

Instead of developing a new system, the bank used BOS to:

Select modules for loan origination, subscription-based pricing, and dynamic repayment schedules 

Configure rules for early repayment, temporary payment holidays, and auto-renewals 

Use the Task Producer to define the processing logic—triggering tasks such as monthly billing, payment validation, customer communication, and contract renewals

The entire product—from concept to launch—was live in under five weeks. 

The Benefits of Building with Puzzles

By combining modular design with the orchestration power of the Task Producer, BOS enables banks and fintechs to: 

Prototype new ideas faster than ever before 

Maintain a library of reusable business logic blocks 

Isolate changes to specific components without disrupting the entire product 

Scale products across geographies and customer segments with minimal changes

Can you build a banking product like puzzles? With BOS, the answer is a resounding yes. 

Can you build a banking product like puzzles?
With BOS, the answer is a resounding yes.

In a time when fintech challengers and evolving customer expectations demand speed, flexibility, and innovation, modularity is no longer a luxury—it’s a necessity. And platforms like BOS, with its component-driven architecture and powerful Task Producer engine, are helping banks of all sizes move from complexity to clarity.  

So the next time someone asks how you plan to innovate in banking, tell them: “We build with puzzles.”

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by Admin INCAT

We’re on the Polish Fintech Map 2025 – again!

The latest edition of the "Polish Fintech Map" by Cashless.pl is out, and we’re happy to be part of it once more.

We’re proud to be listed in the "Software Providers for Fintech" category — alongside many of our partners and friends, including companies such as:

• Verestro
• Efigence
• ITCARD
• Basement and more.

The map highlights the most active players in Poland’s fintech scene – from startups to big tech providers – and it’s great to see our name among them. For us, it’s a sign that the work we’re doing with banks, lenders, and fintechs is making an impact.

At INCAT, we build tools that help financial companies move faster, launch new products quicker, and stay flexible as they grow. Our BOS core banking system is all about making complex things simpler – whether it’s integrations, pricing models, or scaling new services.

Big thanks to Cashless.pl's team for putting this together – and kudos to everyone featured. Always interesting to see how the Polish fintech landscape is evolving.

You can view the full map here: Polish Fintech Map

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by Admin INCAT

BOS at Money 20/20 Europe: Supporting Fintech Growth Across Europe

From June 3 to June 5, the BOS team will be at Money 20/20 Europe in Amsterdam, showcasing our core banking system at booth 8A92. It’s one of the key events for fintech in Europe, and we’re looking forward to connecting with people who are building the future of finance.

Why visit us?

Because we’re not just offering another core system — we’re offering a smarter way to build financial products. Whether you’re launching a digital bank, reshaping your existing tech stack, or just exploring new ideas, our team is here to talk options.

What we’ll be showing?

At our booth, you’ll get a closer look at the BOS core banking platform — modular, API-driven, cloud-ready. We’ll walk you through how it supports:

• Current, savings and loan accounts
• Subscription-based pricing models
• Flexible fee configurations
• Real-time data flows and open integrations

We’ll also share a few real-life examples, like our work with Payman Group in Bulgaria. With BOS, they’ve been able to move fast, stay compliant, and grow in a competitive market.

Let’s talk

If you’re looking for tech that keeps up with your ambition, come see us. We’ll be at booth 8A92 every day of the event. Or you can schedule a dedicated meeting: BOOK A MEETING

📅 Date: June 03–05, 2025
📍 Venue: RAI Amsterdam
🤝Booth: 8A92

Looking forward to seeing you in Amsterdam!

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by Admin INCAT

BOS at Seamless Middle East 2025: Empowering Digital Finance with Sharia-Compliant Core Banking

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by Admin INCAT

Core Banking Migration: What Banks Should Know?

Migrating a core banking system is often perceived as a high-risk, high-complexity undertaking—and with good reason. It touches every aspect of a bank's operations, from customer data and compliance to product configuration and service delivery. Yet, in the face of rising customer expectations and digital transformation pressures, staying with outdated legacy systems is no longer a viable option.

Why Banks Migrate Their Core Systems

The decision for a bank to undertake a core banking system migration is rarely taken lightly. It is a significant undertaking involving substantial investment, time, and organizational effort.  According to a Forrester report, over 60% of global banks are currently planning or executing core transformation projects. Several compelling factors drive this strategic imperative for financial institutions worldwide:  

Mergers and Acquisitions:  When banks merge or acquire other financial institutions, the need to consolidate disparate core systems into a unified platform becomes critical for achieving operational synergies and realizing the full benefits of the integration.

High Maintenance Costs: Maintaining aging core systems can consume a significant portion of a bank's IT budget. The scarcity of skilled personnel familiar with older technologies and the increasing risk of system failures contribute to escalating operational expenses.

Digital customer expectations: Modern users expect real-time, intuitive, and personalized banking experiences. Legacy cores often lack the agility and APIs needed to deliver them.

Operational inefficiencies: Monolithic architectures and outdated codebases make it difficult to automate, optimize, and innovate. 

Regulatory pressure: Compliance with evolving standards (e.g., PSD2, Basel IV) demands more flexible and modular systems. 

Limited Product Innovation and Time-to-market demands: Launching new financial products or adapting to market trends is significantly slower with rigid legacy systems. 

Data Silos and Inefficient Processes: Older core systems often result in fragmented data across different departments and systems, leading to inefficiencies in data management, reporting, and decision-making. 

Vendor support phase-out: In some cases, vendors withdraw support for legacy core systems or force transitions to new platforms, placing banks under pressure to migrate, often with significant cost and limited strategic value.

Gartner notes that banks with legacy systems spend up to 75% of their IT budgets on maintenance, leaving little room for innovation. This stifles growth and limits competitive advantage.

Banks with legacy systems spend up to 75% of their IT budgets on maintenance, leaving little room for innovation.  

Source: Gartner

Key Challenges in Core Migration 

While the benefits of core banking migration are clear, the journey is fraught with challenges. Data migration is consistently cited as the top concern in Gartner and Forrester surveys. Banks must ensure that all historical, transactional, and customer data is transferred accurately and securely, without loss, corruption, or compliance breaches. The sheer volume and sensitivity of this data elevate the complexity of the task.

Another critical challenge is managing business continuity. Core migration affects not only IT infrastructure but also day-to-day banking operations. Poorly executed transitions can result in outages, service disruptions, and customer dissatisfaction—damaging a bank’s reputation and customer trust. Skill gaps also pose a threat. Many banks lack in-house expertise in modern architectures like microservices, cloud, and event-driven systems, making it difficult to drive migration projects internally.

Additionally, institutions often find themselves locked into vendor ecosystems that are hard to exit. Legacy providers may offer limited extensibility or customization, further complicating migration efforts. According to Gartner, 30% of core transformation projects fail to deliver the expected results, often due to insufficient planning, inadequate change management, and a lack of alignment between business and IT stakeholders.

When Core Migration Succeeds 

Despite these risks, successful migrations do happen—and more frequently when they follow a pragmatic and phased strategy. Rather than replacing the entire core in one go, leading banks adopt an incremental approach, starting with non-critical modules or new product lines. This allows for testing, learning, and iterative improvement without disrupting core business functions.

Success is also tied to organizational alignment. When leadership across technology, operations, and business strategy collaborates on a unified migration roadmap, the likelihood of success improves significantly. Cloud-native platforms with modular, API-first, and event-driven architectures provide the technological flexibility needed to support gradual transformation. Just as important is the choice of partner: banks that work with vendors offering end-to-end support—from planning to go-live and beyond—are more likely to complete their migration with confidence.

The BOS Approach to Core Migration 

BOS, developed by INCAT, is designed to make core migration not only feasible but also future-proof. Unlike many traditional systems that require a “big bang” approach, BOS supports phased migration, allowing banks to transition gradually while maintaining business continuity. 

"We recognize that for many banks, replacing the core system is like open-heart surgery," says Zdzisław Grochowicz, Chief Product Officer at INCAT. "That’s why we designed BOS to be modular and interoperable. You can start small—for example, by migrating a single product line or customer segment—and expand from there." 

Key strengths of the BOS migration model include: 

Microservices-based architecture: Enables gradual replacement of legacy components without disrupting the entire system. 

Event-driven engine: Keeps legacy and new systems in sync during transition. 

API-first design with always-up-to-date migration tools: Facilitates integration with existing infrastructure, front-end applications, and third-party services, while ensuring that data migration mechanisms remain current and efficient. These tools ensure accuracy, traceability, and compliance throughout the process.

 

We recognize that for many banks, replacing the core system is like open-heart surgery. That’s why we designed BOS to be modular and interoperable. You can start small—for example, by migrating a single product line or customer segment—and expand from there.

Zdzisław Grochowicz, Chief Product Officer at INCAT

What Sets BOS Apart 

BOS stands out with its event-first architecture and high degree of customizability without coding.  

"Many platforms offer configuration, but BOS gives banks the power to define business rules and workflows dynamically, without having to touch the source code," explains Piotr Hanusiak, CEO of INCAT. "This means lower maintenance costs, shorter implementation times, and a system that truly adapts to your business." 

Another key differentiator is INCAT’s deep involvement throughout the migration process. Rather than handing over documentation and walking away, INCAT provides: 

• Dedicated migration teams with core banking and domain-specific expertise 

• Flexible deployment options (cloud, on-prem, or hybrid) 

• End-to-end support, from data mapping and sandbox testing to go-live readiness and beyond 

 

Many platforms offer configuration, but BOS gives banks the power to define business rules and workflows dynamically, without having to touch the source code. This means lower maintenance costs, shorter implementation times, and a system that truly adapts to your business. 

Piotr Hanusiak, CEO of INCAT

Lessons from the Field 

Banks that have successfully migrated to BOS often follow several best practices. Many start with greenfield initiatives — like launching a digital-only brand or testing new loan products —to validate the platform. Running BOS in parallel with legacy systems helps reduce risk and ensures smooth handover when the time comes. Prioritizing open APIs from the outset enables faster integration with payment processors, CRMs, and compliance tools.

Training and internal engagement are equally crucial. Institutions that invest early in onboarding their technical teams and aligning business stakeholders tend to experience smoother adoption and faster go-lives.

Not a matter of if, but when

Core banking migration is no longer a question of if, but when. In an era of rapid digital disruption, customer expectation, and regulatory flux, modernizing the core is essential for future viability. Yet the path to transformation must be taken with care, clarity, and the right partners.

BOS by INCAT offers more than just a next-generation core—it delivers a methodology and a team equipped to handle the entire journey from legacy to modern banking. For banks ready to make the leap, BOS provides the architecture, flexibility, and support needed to transform with confidence. The question isn’t whether your bank should migrate—it’s whether you're choosing a partner that can take you where the future is headed.
If you're looking to migrate your core, explore how BOS can be the foundation of your success. Contact us to learn more! 

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by Admin INCAT

How to build a neobank from scratch? A practical guide for founders

The banking industry has undergone a radical transformation over the past decade, driven by digital innovation and shifting consumer expectations. Neobanks — fully digital financial institutions — have disrupted traditional banking by offering seamless user experiences, low fees, and innovative services tailored to modern customers.  According to market research there are over 400 neobanks worldwide as of 2024 and the global neobank market is projected to reach $2 trillion by 2030. In addition more than 20% of millennials and Gen Z prefer digital-only banking solutions. This surge presents a compelling opportunity for fintech entrepreneurs looking to establish their own neobank. But how do you build a neobank from scratch? 

Neobank? What's that?

A neobank is a digital-only financial institution that operates without physical branches. Unlike traditional banks, neobanks leverage cutting-edge technology to offer seamless, user-friendly, and cost-effective banking solutions via mobile apps and online platforms. They cater primarily to tech-savvy individuals and businesses looking for fast, flexible, and innovative banking services. Neobanks function entirely online, relying on cloud-based infrastructure and advanced APIs to provide financial services. They typically partner with licensed banks or acquire their own banking licenses to offer core banking functions like payments, loans, and savings accounts. With AI-driven analytics and automation, neobanks enhance customer experiences by personalizing services and optimizing transaction processing.

Differences between traditional banks and neobanks

Traditional banks and neobanks differ in several key aspects. Traditional banks operate physical branches where customers can conduct transactions, while neobanks are entirely digital, eliminating the need for in-person banking. Customer support in traditional banks is typically available through in-person visits or phone calls, whereas neobanks rely heavily on AI-driven chat support and automation.

In terms of fees, traditional banks often charge higher account maintenance fees, transaction fees, and other service costs, while neobanks tend to offer lower or no fees due to their cost-efficient digital infrastructure. Transaction speed is another major differentiator—traditional banks may take longer to process payments and transfers, while neobanks provide real-time transactions.

Furthermore, neobanks focus on a highly personalized banking experience using AI-driven insights and data analytics, whereas traditional banks have limited personalization due to legacy systems. These differences make neobanks particularly attractive to younger, tech-savvy customers who prioritize convenience and digital-first solutions.

Neobanks' costs

Building a neobank is a costly endeavor, with initial investments ranging from $5 million to $50 million, depending on the business model.  To give you a sense of the scale of costs involved, it's worth noting that Revolut raised approximately $800 million across multiple funding rounds before reaching profitability, N26 secured over $900 million to scale its operations and navigate regulatory challenges and Chime - one of the largest U.S. neobanks, has raised more than $2 billion to expand its product offerings and customer base.
Major cost factors include:

Licensing and Compliance – Regulatory approvals can cost millions.

Technology Development – Building and maintaining a robust banking platform requires a high budget.

Security and Fraud Prevention – Investing in cybersecurity is essential.

Marketing and Customer Acquisition – High competition demands a solid marketing strategy.

Operational Costs – Includes customer support, partnerships, and workforce expenses.

 

Neobanks are not just changing banking—they are redefining financial inclusion and customer experience in a digital-first world. 

- Piotr Hanusiak, CEO of INCAT

Benefits of neobanks

Neobanks offer several advantages over traditional banking models, making them an attractive option for both consumers and businesses:

Lower Costs – Due to the absence of physical branches, neobanks operate with lower overhead costs, enabling them to offer reduced fees or even fee-free banking.

Seamless User Experience – Their mobile-first approach ensures a smooth, intuitive, and fast banking experience.

Faster Transactions – Real-time payment processing, instant money transfers, and early paycheck deposits are some of the core advantages.

Personalized Banking Services – AI-driven analytics allow neobanks to offer tailored financial products and insights.

Financial Inclusion – Many neobanks cater to underbanked populations, offering accessible banking services to individuals and small businesses who may struggle to get accounts with traditional banks.

Integrated Financial Tools – Budgeting tools, automated savings, cryptocurrency trading, and real-time financial insights help users manage their finances more effectively.

 

Steps to building your own neobank

If you’re considering launching a neobank, here are the critical steps to follow:

 

1. Define your value proposition

The first step in building a neobank is identifying your unique value proposition (UVP). The fintech market is competitive, and differentiation is crucial. Consider the following questions: 

Who is your target audience (e.g., freelancers, SMEs, unbanked populations)? 

What problem are you solving that traditional banks fail to address? 

How will you monetize your services (subscription model, transaction fees, lending, etc.)? 

Example: Revolut started as a travel-focused banking alternative, offering multi-currency accounts with low exchange fees. Understanding your niche helps guide product development and branding.

 

2. Secure regulatory approvals 

Banking is a highly regulated industry. Before launching, you need to obtain the necessary licenses, which vary by country. The two primary routes are: 

Banking License: Required for offering full-fledged banking services, but expensive and time-consuming to acquire.

Partnership with a Licensed Bank: Many neobanks initially operate under the license of an established bank to avoid regulatory hurdles.

 

3. Choose the right core banking system

A robust core banking system (CBS) is the backbone of any neobank. The choice of CBS influences scalability, security, and flexibility. BOS is an ideal choice due to its modular architecture, API-driven approach, and cloud-native infrastructure.

Why BOS? 

Fast Deployment: BOS enables quick go-to-market strategies for neobanks.

Scalability: Handles growing transaction volumes without performance issues.

Flexibility: Supports various financial products, including current accounts, savings, lending, and subscription-based models.

Security & Compliance: Built-in compliance features for international regulations (e.g., GDPR, PSD2, AML).

Example: D360 Bank - a digital bank in Saudi Arabia, leveraged BOS to launch its services efficiently while ensuring compliance with local regulations.

 

4. Build a seamless user experience (UX/UI)

Neobanks thrive on superior user experience. Your app and web platform should be: 

Intuitive – Simple onboarding and account setup.

Fast – Instant payments, transfers, and notifications.

Secure – Two-factor authentication and biometric login.

Engaging – Gamification and rewards for user activity.

Example: Monzo gained traction by offering instant spending notifications and budget-tracking features  within its sleek mobile app.

 

5. Leverage open banking and APIs

Modern neobanks are API-first, meaning they integrate with multiple third-party services, such as: 

Identity Verification (e.g., Onfido, Jumio)

Payment Gateways (e.g., Stripe, Plaid)

Credit Scoring & Risk Management (e.g., Experian, FICO)

BOS’s API-driven architecture makes it easy to connect with these fintech solutions, allowing neobanks to build a highly customized ecosystem.

 

6. Build a Strong Security Framework

Neobanks face increasing risks of cyber fraud and financial crime. Key strategies include: 

AI-Powered Fraud Detection: Machine learning models to detect unusual transactions.

Transaction Monitoring: Real-time alerts for suspicious activities.

KYC & AML Compliance: Automate Know Your Customer (KYC) and Anti-Money Laundering (AML) checks.

 

7. Plan your customer acquisition and growth strategy

A neobank without customers is just an idea. Effective marketing strategies include: 

Referral Programs – Encourage existing users to invite others.

Content Marketing – Publish educational content on fintech trends.

Influencer & Community Engagement – Leverage social media and fintech communities.

The rise of neobanks signals a shift towards a more flexible, customer-centric banking experience. However, launching a neobank requires careful planning, compliance with regulations, and significant financial investment. With the right strategy and technology, entrepreneurs can tap into this booming industry and create a successful digital bank. If you're looking to start your neobank journey, explore how BOS can be the foundation of your success. Contact us to learn more! 

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by Admin INCAT