Deutsche Bank adopts Vault Core as new core banking platform for retail customers

What’s changing

Deutsche Bank plans to trim its current 15 disparate core‑banking systems in retail banking down to just two cloud‑based platforms. The first of these is Thought Machine’s Vault Core, which will cover all banking and credit products of German personal banking, including current accounts, deposits and savings products across all brands and distribution channels. In doing so, the bank will replace the existing SAP solutions—such as SAP Deposits Management, SAP BRIM, SAP Hybris and SAP Bank Analyzer—as well as the COBOL‑based ZVKK system. The product logic will remain developed in‑house and will run as independent Python‑based smart contracts on the Vault Core environment.

Vault Core is a cloud‑native architecture built on micro‑services and Kubernetes, creating a clear separation between product logic and the underlying infrastructure. The bank retains responsibility for developing and tailoring its products, while Thought Machine maintains and operates the platform. Deutsche Bank has engaged GFT as system integrator to deliver the project with an integrated on‑shore, near‑shore and off‑shore team. Initial tests are scheduled by year‑end, with the full migration rolling out gradually from 2027, while legacy systems will continue to run in parallel to safeguard operations.

Cost

Deutsche Bank has announced an investment of roughly €600 million for modernising its core‑banking landscape, earmarked through the end of 2028. The budget will cover licensing of Vault Core, GFT’s system‑integration services, data and application migration, the development of AI capabilities and the necessary staff training. The bank stresses that the funds are intended for both the technical implementation and the accompanying organisational changes.

The projected annual saving of €300 million stems from several sources: lower licensing and maintenance costs for the SAP systems being retired, reduced effort to maintain interfaces and lower energy consumption thanks to the consolidated cloud infrastructure. In addition, the standardised platform enables faster roll‑out of new products, unlocking further revenue potential. While the bank has not published a detailed cost breakdown, the figures provide an initial indication of the project’s economic viability.

• Investment through end‑2028: €600 million
• Expected annual saving after completion: €300 million

What could break

Migrating from the existing SAP platforms and the COBOL‑based ZVKK system to Vault Core will involve transferring large data volumes and adapting numerous interfaces to payments, card acceptance, online banking and external partners. During the transition, legacy systems must run in parallel to ensure uninterrupted service for current accounts, deposits and savings products. This parallel run increases the workload for monitoring and data reconciliation, and any error risk could lead to temporary service disruptions.

Beyond the technical challenges, the change also impacts organisational processes: the Accounts & Deposits division is currently looking for a Lead Engineer to support the migration ‘from the SAP platforms to Vault Core’, underscoring the need for specialised expertise. Developers and operations staff will need training on the new Python‑based smart‑contract environment and on Kubernetes, while business units must adapt their processes to the new product logic. Interfaces to risk management, reporting and regulatory compliance will also need to be reviewed and, where necessary, rebuilt.

What the switch demands

The move to Vault Core is a multi‑year programme that has already begun with preparation and initial testing, and is slated to be finished by year‑end. The actual product migration will start gradually from 2027 and is expected to be completed by the end of 2028, with legacy systems continuing to run in the meantime. Various parts of the organisation are called upon: architecture and development must translate product logic into smart contracts, the operations team will manage the cloud platform, business units will define migration waves, and change‑management will train staff in the new ways of working.

For the imminent decisions, the bank first needs to decide which product groups will be moved in the initial migration wave and which cut‑over windows are considered safe. At the same time, a budget must be set aside for external consulting, training and any emergency rollback mechanisms. Governance must ensure that DORA requirements for an exit strategy are met, while project control monitors progress against the planned €600 million investment and the target €300 million annual saving.