Breaking Data Silos: How Modernization is Reshaping Banking Operations
DOI:
https://doi.org/10.15680/IJCTECE.2025.0803007Keywords:
Data Silos, Banking Modernization, Cloud Transformation, API Interoperability, Digital Banking Infrastructure, Financial Services Innovation, Risk ManagementAbstract
The rapid evolution of digital banking has amplified the urgency for modernization strategies that dismantle entrenched data silos and enable seamless interoperability across financial systems. Traditional legacy infrastructures, often characterized by fragmented databases and monolithic architectures, restrict data accessibility and hinder operational agility. Modernization initiatives—driven by cloud adoption, advanced analytics, and API-first frameworks—are reshaping banking operations by enhancing real-time decision-making, improving risk assessment, and driving customer-centric innovation. Drawing upon prior research in interoperability and data modernization, this article examines the transformative impact of breaking down data silos on core banking functions, cross-border payments, compliance, and customer experience. Through a literature-driven analysis, case studies, and industry insights, the study highlights the measurable improvements in performance, efficiency, and resilience that modernization delivers to financial institutions. The findings emphasize that banks embracing scalable digital infrastructures not only mitigate the risks of legacy dependency but also unlock new opportunities for ecosystem collaboration and sustainable growth.
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