Significant improvement in analysis speed
Reduced transaction categorization time
Accelerated roll-out of new services
Increased flexibility and elasticity
Met outsourcing project deadlines
Amid rising competition and demand for advanced digital services, Erste Digital, IT partner of Erste Group, a leading financial institution in Central and Eastern Europe, turned to Google Cloud to modernise its infrastructure, optimise costs, and innovate in data utilization.
Erste Group has become a major player in the financial sector of Central and Eastern Europe. The bank provides a comprehensive range of financial services, including retail banking, wealth management, and investment solutions. Amid rising competition and growing demand for advanced digital services, Erste Digital, the IT partner of Erste Group has embraced technological innovation, embarking on an ambitious digital transformation to sustain its competitive edge and continue delivering exceptional services to its customers.
"Innovation is at the heart of our strategy," confirms Ulrich Buchberger, Product Owner of Cloud Platforms at Erste Digital. "While our robust data centers support our traditional banking applications and serve both employees and customers, we recognise that they are not ideal for adopting AI and fully leveraging our data. From both a technological and economic perspective, the cloud offers a much more attractive alternative, which is why we turned to Google Cloud."
Erste Digital’s cloud strategy aimed to modernize its existing infrastructure, improve operational efficiency, and optimise infrastructure costs, all while paving the way for innovation. "Using out-of-the-box managed services frees us from non-value-added infrastructure management and maintenance tasks. This allows us to be more responsive and competitive when deploying new services," says James D'Alfonso, Lead Cloud Engineer at Erste Digital. "Furthermore, Google Cloud gives us the flexibility and elasticity we need to exploit our data on a large scale."
The project was ambitious and the stakes were high: The cloud that was chosen had to guarantee compliance with stringent banking regulations and the security of confidential data. It also needed to ensure the performance of critical applications and offer advanced services to enable the banking institution to achieve its innovation goals, particularly in the areas of data and generative AI.
Using out-of-the-box managed services frees us from non-value-added infrastructure management and maintenance tasks. This allows us to be more responsive and competitive when deploying new services. Furthermore, Google Cloud gives us the flexibility and elasticity we need to exploit our data on a large scale.
James D'Alfonso
Lead Cloud Engineer, Erste Digital
Erste Digital's IT team, fully aware of the cloud's intrinsic benefits, saw an opportunity to enhance its experiences with cloud providers. From the outset, they included a highly specific clause in their tender, emphasizing the importance of strong support from their future partner, ensuring a more fruitful collaboration moving forward. "Naturally, our selection process involved a rigorous evaluation of each supplier's technologies. Google Cloud quickly stood out with its data platform," explains Ulrich Buchberger. "But technology was only part of the equation. We were seeking a committed partner with a dedicated and stable team, rather than impersonal support with changing contacts. From the outset, we made it clear that we wanted experts integrated into our teams for the duration of the project." Collaborating with Google Cloud Consulting played an important role in the cloud program's successful execution, even offering proactive support from its teams to assist the financial institution with security and compliance issues, design the target architecture, and then commence the workload migration.
Naturally, our selection process involved a rigorous evaluation of each supplier's technologies. Google Cloud quickly stood out with its data platform.
Ulrich Buchberger
Product Owner of Cloud Platforms, Erste Digital
In practical terms, the project began with the design and implementation of a 'landing zone' on Google Cloud, a secure and compliant environment designed to gradually house the bank's applications. This crucial first stage also allowed the bank to establish a solid foundation for future service development. The IT teams leveraged Terraform to automate and streamline configurations, ensuring reproducibility. Combining Terraform with established enterprise patterns in Fabric FAST, a project to which Erste Digital actively contributes, has enabled rapid and dependable deployments.
Overall, the formation of a unified team, comprising engineers from Google Cloud Consulting and experts from Erste Digital, helped to overcome technical challenges and ensure a smooth transition. This collaborative approach also included a customized training initiative, allowing internal teams to enhance their skills in Google Cloud technologies and adopt new development and infrastructure management practices while achieving a Google Cloud certification.
Still in progress, the cloud program is already yielding tangible results. For instance, Erste Digital has experienced a significant improvement in the speed of data analysis, particularly due to the use of BigQuery and Bigtable. This increased performance not only allows for quicker responses to customer needs but also enables the extraction of valuable insights for the development of new services. Additionally, the time required to categorize transactions has been reduced from several minutes to just a few seconds. More broadly, the flexibility offered by Google Cloud paired with an automated and standardized CI/CD process enables the bank to test and deploy new functionalities with greater agility, a crucial aspect of its 'cloud-first' strategy for continuous innovation.
And this is just the beginning: Erste Digital aims to build on this transformation to expand its range of services and further optimize its operations. Specifically, it is currently exploring innovative cloud services to enhance internal processes and provide innovative, personalized services to its customers. The bank also intends to strengthen its FinOps strategy with the assistance of Google Cloud Consulting experts to maximize the return on investment of its cloud infrastructure.
Of course, the richness of Google Cloud’s technological offering was essential, but the real success of our project lies in a combination of Google Cloud's solutions and the strong partnership we forged with the Google Cloud Consulting team. We created a unified team, free from technological limits, capable of achieving anything.
Ulrich Buchberger
Product Owner of Cloud Platforms, Erste Digital
"Of course, the richness of Google Cloud’s technological offering was essential, but the real success of our project lies in a combination of Google Cloud's solutions and the strong partnership we forged with the Google Cloud Consulting team. We created a unified team, free from technological limits, capable of achieving anything. This synergy enabled us to meet our deadlines and exploit the potential of the cloud. Initially, we were cautious, but we quickly realized that the Google Cloud Consulting team was not only highly competent but also perfectly compatible with our own. This joint development, despite our strictly regulated environment, has been truly exceptional and mutually enriching," concludes Ulrich Buchberger.
Google Cloud Consulting is engaged on a long-term basis to ensure the success of Erste Digital’s Cloud program through advisory in technology, compliance, training and organizational transformation.
Erste Digital is part of Erste Group – the largest banking group in Central and Eastern Europe with 2,000 branches and over 45,000 employees. Our more than 2,000 IT experts and enthusiasts are the bank's digital muscle and heart. With top notch technology, we drive the realization of Erste Group’s vision: To provide human banking in digital times, and to build Financial Health for over 16,4 million customers in the CEE region. We #makeITmatter
Industry: Financial Services
Location: Austria
Products: Google Cloud, BigQuery, Bigtable