Eastern Europe’s banking technology landscape is undergoing a significant transformation as financial institutions modernize legacy core systems and prioritize greater agility, operational flexibility, and digital integration. Banks are increasingly shifting away from traditional function-focused architectures toward platforms capable of supporting digital banking, real-time transactions, advanced analytics, and cross-border operations. This transformation is particularly relevant across Hungary, Romania, Poland, the Czech Republic, Serbia, and Bulgaria, where institutions are balancing modernization requirements with technology costs and regulatory expectations.

2025–2030 Eastern Europe core banking industry analysissoftware and services, on-premise and cloud deployment, retail, private, corporate, universal and wholesale banking, bank asset sizes, and country-level marketsA comprehensive market assessment by MarkNtel Advisors highlights that the Eastern Europe Core Banking sector is expanding through , driven by increasing adoption of modern banking infrastructure, rising demand for operational flexibility, digital transformation, and the replacement of outdated systems. The evaluates the sector across . The study identifies Software as the leading historical component and Cloud as the fastest-growing deployment segment.

Legacy Modernization Drives Technology Investment

Legacy infrastructure remains one of the most important factors influencing core banking modernization. Many regional financial institutions continue to operate internally developed or outdated systems that can restrict their ability to integrate emerging technologies and launch new digital services.

The source study notes that these platforms can increase operational costs, limit agility, and make it more difficult to respond to changing customer expectations and regulatory requirements. Replacing such systems can be complex because banks must manage data migration, integration, business continuity, and technology risk.

Consequently, institutions are increasingly evaluating modern core banking platforms that can simplify fragmented IT environments while creating a stronger foundation for digital services.

Software Remains a Core Banking Foundation

Software captured the highest historical share of the component segment. Modern core banking software supports essential functions such as deposits, lending, account management, interest calculations, customer information, and transaction processing.

Beyond basic banking functions, newer software platforms can help institutions analyze customer and operational data, improve system flexibility, automate processes, and integrate additional digital applications.

The source study indicates that software adoption is expected to continue supporting modernization across Eastern Europe as banks seek to reduce operational complexity and improve the efficiency of their technology environments.

Cloud Deployment Gains Momentum

Cloud is projected to record the highest growth among deployment options during the forecast period. Financial institutions are increasingly considering cloud-native platforms because of their scalability, accessibility, installation flexibility, and potential to reduce infrastructure-related costs.

European Banking AuthorityThe has recognized cloud computing as an important technology for financial innovation while emphasizing the need to manage risks involving data security, data location, audit rights, subcontracting, and contingency planning.

For Eastern European banks, cloud deployment can also facilitate integration with digital banking applications, payment systems, analytics tools, and other financial technologies.

Digital Banking Accelerates Core Upgrades

The rapid expansion of digital banking capabilities is reshaping the requirements placed on core systems. Consumers and businesses increasingly expect banking services to be accessible through mobile and online channels, with faster processing and more personalized experiences.

The source study identifies the expansion of digital banking and real-time payment solutions as a leading trend. Banks are consequently investing in core banking upgrades that can support instant transactions, digital customer journeys, and flexible integration with external systems.

This shift is moving core banking platforms beyond traditional transaction processing toward becoming central components of broader digital ecosystems.

Instant Payments Create New Requirements

Real-time payments are adding further pressure for banks to modernize their underlying infrastructure. Instant transactions require systems that can process payments continuously, reliably, and with appropriate fraud and compliance controls.

European Central BankThe EU's Instant Payments Regulation requires payment service providers to progressively support instant euro transfers and verification of payees. The notes that the regulation also includes requirements concerning equal charges and sanctions screening.

These developments are increasing the importance of core platforms capable of supporting real-time payment environments and connected financial services.

Blockchain Encourages Further Innovation

The source study identifies rising interest in blockchain technology as a driver for the regional core banking sector. Financial institutions are exploring advanced technologies that can improve digital products, transaction processes, data management, and customer experiences.

Blockchain is not necessarily replacing conventional core banking systems, but its development is encouraging banks to consider more flexible and interoperable technology architectures.

At the same time, the increasing use of APIs and modular banking platforms is making it easier for financial institutions to connect core systems with fintech applications and third-party services.

Operational Resilience Becomes Essential

Greater reliance on cloud providers and interconnected technology platforms also increases the importance of operational resilience. Banks need to ensure that technology disruptions, cyber incidents, or third-party failures do not significantly affect critical financial services.

The European Banking Authority's framework for ICT outsourcing emphasizes governance, risk assessment, and oversight of outsourced technology arrangements. More recently, the EU's Digital Operational Resilience Act has strengthened requirements surrounding ICT third-party risk. The EBA's DORA framework requires financial entities to assess risks associated with subcontracting ICT services supporting critical or important functions.

Hungary Shows Strong Modernization Potential

Hungary is identified in the source study as a market with significant growth prospects. Financial institutions are increasingly focusing on cloud-native infrastructure and modernization to improve operational efficiency, accessibility, and flexibility.

CEC Bank's selection of Temenos in 2025Poland and Romania are also important markets for core banking transformation. A notable development highlighted by the study is to modernize its retail and corporate core banking systems.

Such initiatives demonstrate the continuing movement toward modern, scalable banking infrastructure across the region.

Competitive Landscape

FIS, DXC Technology, TAS Group, Finastra, Sopra, Temenos, Oracle, Asseco, Diasoft, and AvaloqThe competitive environment includes .

Competition increasingly centers on cloud capabilities, integration flexibility, digital banking functionality, scalability, operational resilience, cybersecurity, and the ability to support real-time payment environments.

Outlook for Eastern Europe Core Banking

Cloud-native platforms, digital banking, instant payments, blockchain, API integration, and stronger operational resilienceEastern Europe's core banking sector is expected to continue evolving as banks modernize legacy systems and adopt more flexible technology architectures. will remain important areas of development.

As financial institutions seek to simplify fragmented IT environments while improving customer experiences, modern core banking platforms will increasingly serve as strategic foundations for digital transformation. Banks that successfully combine modernization with security, regulatory compliance, and scalable infrastructure will be better positioned to respond to the region's changing financial-services environment.

Eastern Europe Core Banking: Cloud Modernization, Digital Banking, and Instant Payments Reshape Bank

Eastern Europe Core Banking Market Transformation