William Hatfield, Commercial Director at 10x Banking, reflects on the shifting core banking landscape in Central and Eastern Europe (CEE), drawing on recent conversations with leading banks in Poland.
CEE is no longer content with patching up the past. While the region pulses with fintech ambition, many banks remain stuck in a legacy loop, repeatedly investing in outdated core systems just to keep them running. These systems, often built on COBOL and mainframes, are expensive, rigid, and increasingly risky. The talent to maintain them is vanishing, and compliance demands are growing. The loop must be broken.
Poland: a bellwether for change
On a recent trip, I met with three of the Poland’s largest banks alongside our CRO Tom Bentley to discuss core modernization. The takeaway? Banks aren’t just ready to change; they’re ready to lead.
The legacy loop, where short-term fixes and patchwork upgrades delay full transformation, is being dismantled. In partnership with GFT, we’ve launched a campaign to support banks in escaping this cycle and embracing meta core technology.
GFT’s report reveals that while 46% of Polish banks still run on platforms over 20 years old, 55% have already begun modernizing, and another 9% plan to start within two years. Cloud-native, microservices-based architecture is now seen as essential, not just for efficiency, but for agility, scalability, and innovation.
Poland’s progress is setting the pace for the region. As its banks rebuild from the core, the ripple effect across CEE is already underway.
A region ready to rebuild
At 10x, we’ve seen the ripple firsthand. At Money Motion 2025 in Zagreb, AI and digital transformation dominated the agenda, with over 2,500 attendees and 700 companies exploring the future of banking. Real-time payments, embedded finance, and platform-based banking were front and center. Banks made it clear: they’re ready to move beyond siloed systems and embrace agile, scalable solutions that support innovation at speed.
That readiness was echoed at Unchain Festival in Romania, where fintechs showcased how cloud-native infrastructure is leapfrogging legacy tech. AI-driven lending and embedded finance are gaining traction across industries like retail and agriculture. One standout example was the Visa–Lendox partnership, which signal a move towards cross-border innovation and SME enablement.
CEE has always been a region that reinvents itself. Today, that same spirit is driving a new wave of core banking transformation. Transformation built on openness, modularity, and the freedom to innovate in real time.
Four forces driving the legacy break
Across CEE, four forces are accelerating the shift away from legacy infrastructure and helping banks break the loop.
1. Sunsetting legacy systems
Many banks are still running platforms that are not only outdated but increasingly risky. These systems pose serious compliance and security challenges, especially as regulations evolve and cyber threats grow. Their tightly coupled architecture also limits scalability and slows down innovation, making even simple changes costly and complex.
2. Demand for dual runtime and agility
Traditional platforms are dependent on vendor updates to make changes, a lengthy process, if requests make it on to the vendor roadmap at all. Banks want real-time deployment and flexibility. Platforms like 10x's offer environments that support agile development and instant innovation.
3. Talent drain and developer disinterest
Legacy languages like COBOL are no longer attractive to top engineers. As experienced developers retire, banks face a growing skills gap. Modern platforms help attract and retain the talent needed to build the future.
4. Strong appetite for fourth-gen technology
In competitive markets where gaining share is increasingly difficult, banks know they can’t scale or differentiate on mainframes. New digital banking, embedded finance and buy now, pay later propositions are incredibly hard to achieve on archaic architecture. Instead, they’re turning to modular, containerized, and real-time platforms to innovate and stay competitive.
The loop ends here
CEE banks recognize that now is the time to break the legacy loop and lay future-proof foundations – ones that not only harness today’s technology but are built to evolve with the AI-driven innovations of tomorrow.
The 10x Banking Platform is built for banks that want to lead. Our modular, event-driven architecture enables institutions to:
- Launch new products quickly
- Scale globally with ease
- Reduce operational risk
- Attract top talent
- Avoid vendor lock-in
We’re proud to be trusted by leading banks including Chase UK, Westpac, Old Mutual, Co-op Bank, and West Brom. Our client base is growing because our technology empowers banks to innovate – without compromise.
If you’re a bank leader ready to break the loop, we’d love to explore how 10x can support your journey. Let’s talk.
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