Hybrid Cloud in Banking: Best Practices for Integrating Legacy and Modern Systems

Abstract

This article evaluates best practices for integrating legacy and modern systems through hybrid cloud architectures in the banking sector. It examines the strategic importance of hybrid cloud as financial institutions balance technological transformation with regulatory compliance and operational stability. The article details critical implementation domains, including connectivity strategies that bridge on-premises and cloud environments, comprehensive security frameworks addressing the unique requirements of financial institutions, data synchronization methods ensuring consistency across distributed systems, and implementation approaches balancing technological change with organizational readiness. By looking at some of current industry practices, the article identifies key challenges in legacy system integration while providing actionable strategies for managing connectivity, security, data synchronization, and organizational change. Banking institutions can leverage these practices to accelerate digital transformation while preserving existing technology investments and maintaining regulatory compliance.