Introduction
SBS and Red Hat will integrate cloud technology with legacy systems using the OpenShift platform, with the objective of expanding into 80 markets. SBS, a financial technology provider that specializes in the development of software for banks and lenders, has partnered with Red Hat, an enterprise open-source firm, to assist financial institutions in the integration of cloud computing capabilities into their current infrastructure.
The collaboration is focused on the deployment of Red Hat OpenShift, a container platform that enables organizations to execute applications across various computing environments. This technology allows banks to maintain their existing on-premise systems that meet regulatory requirements while incorporating cloud computing. According to research, 90% of financial institutions are adopting a hybrid approach to cloud adoption, which involves the incremental integration of cloud-based services while maintaining existing systems.
This approach enables banks to modernize their technology platform while preserving infrastructure investments. Red Hat OpenShift will be integrated into the financial software products of SBS, which provides services to clients such as Société Générale, Toyota Financial Services, and Santander. The platform offers “cloud-native” capabilities, which are applications that are particularly designed to operate in cloud computing environments. This allows banks to maintain sensitive data within their existing systems.
The partnership represents a substantial change for SBS, which was previously known as Sopra Banking Software. The company is a top 10 European fintech provider, as per technology research firm IDC, and it has a workforce of 3,400 employees working in 50 offices worldwide. The technological foundation for SBS’s next iteration of banking products will be provided by Red Hat, a company that specializes in Linux operating systems and Kubernetes container management software. These products encompass consumer finance applications, compliance, payments, lending, and fundamental banking.
The collaboration is designed to confront specific obstacles in the financial services sector, where institutions are compelled to reconcile strict regulatory compliance with innovation. OpenShift’s hybrid cloud approach enables banks to modernize their systems without sacrificing security or regulatory compliance. The partnership’s objective is to provide localized technical support to SBS’s client base in over 80 markets.
This is a continuation of the existing partnership between Red Hat and Sopra Steria, the former parent corporation of SBS. Sopra Steria is a Red Hat Premier Business Partner in numerous European countries. It offers financial institutions access to cloud computing benefits, such as enhanced scalability and operational flexibility. The platform allows institutions to deploy new services more quickly while still maintaining control over their data infrastructure.
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Industry Comments
“We’re pleased to collaborate with SBS, which is deeply engaged with financial services institutions in the region” Penny Philpot, EMEA Ecosystems Vice President, Red Hat.
The collaboration reflects broader industry shifts, with Penny Philpot, EMEA Ecosystems Vice President at Red Hat, saying: “We’re pleased to collaborate with SBS, which is deeply engaged with financial services institutions in the region, to help address the application development needs of the financial sector.”
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FAQs
1. What is the main focus of the SBS and Red Hat partnership?
The collaboration between SBS and Red Hat focuses on integrating cloud computing with legacy systems in financial institutions. By leveraging Red Hat OpenShift, a container platform, this partnership enables banks to adopt hybrid cloud technology while maintaining on-premise systems to ensure regulatory compliance and data security.
2. Why is a hybrid cloud approach significant for financial institutions?
Research shows that 90% of financial institutions are adopting a hybrid cloud strategy, which allows them to modernize their technology stack without discarding existing infrastructure. This approach ensures banks can preserve their investments in legacy systems while benefiting from the scalability, flexibility, and innovation offered by cloud-based solutions.
3. How does Red Hat OpenShift benefit SBS and its clients?
Red Hat OpenShift provides “cloud-native” capabilities, allowing applications to run seamlessly in cloud environments while ensuring sensitive data remains within existing on-premise systems. This integration enhances SBS’s offerings in core banking, lending, payments, and compliance, enabling clients like Santander and Société Générale to innovate securely and efficiently.
4. What does this partnership mean for SBS’s global expansion?
The partnership supports SBS’s growth strategy by providing localized technical support in over 80 markets. It builds upon SBS’s expertise as a top 10 European fintech provider and its existing relationship with Red Hat, ensuring financial institutions worldwide can deploy modern services without compromising regulatory or operational standards.
Conclusion
The partnership between SBS and Red Hat signifies a transformative moment in the financial services sector, bridging the gap between legacy systems and modern cloud technology. By deploying Red Hat OpenShift, SBS empowers financial institutions to adopt a hybrid cloud approach, balancing innovation with regulatory compliance—a crucial requirement in the highly regulated banking industry.
This collaboration provides banks with “cloud-native” capabilities, enabling them to deploy applications designed for cloud environments while safeguarding sensitive data within their existing infrastructure. With clients such as Santander, Société Générale, and Toyota Financial Services, SBS is poised to deliver scalable and flexible solutions for core banking, lending, compliance, payments, and consumer finance applications.
SBS’s commitment to expansion across 80 markets highlights its role as a global leader in fintech. Through localized technical support and enhanced operational flexibility, the partnership ensures financial institutions can rapidly modernize their services to meet evolving consumer demands.
By integrating Red Hat’s expertise in Kubernetes and Linux systems with SBS’s financial software, this initiative underscores the importance of hybrid cloud strategies in driving the future of financial technology. The partnership not only enhances operational efficiency but also sets a precedent for innovation in the banking sector, demonstrating how legacy systems and cloud technology can coexist to support long-term growth.
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