ON-POINT Insight #12 - expertise from the consulting frontline
Unlocking More Value from Avaloq Data - Why Banks Should Be Looking at Snowflake Now by Frank Lehmann
How a modern data architecture can help banks turn existing core banking data into better decisions, greater efficiency and a stronger foundation for AI. This article explores how Avaloq and Snowflake can work together to create a scalable, well-governed data foundation that supports reporting, analytics, compliance and future AI-driven use cases across the organisation.
Executive Overview
- Banks already hold much of the data they need to improve decision-making, productivity and innovation. The real challenge is making that data securely, consistently and scalably available.
- Avaloq should remain focused on what it does best – providing a stable, reliable platform for core banking processes – while analytical workloads are handled in an environment designed for them.
- Snowflake can complement Avaloq as a central data and analytics platform, creating a shared foundation for Management, Finance, Risk, Compliance and the Front Office.
- A pragmatic, use-case-led approach allows banks to demonstrate value quickly, reduce implementation risk and scale with confidence.
The strategic advantage does not come from replacing the core banking system, but from making existing data securely, consistently and scalably usable.
Many banks are investing in artificial intelligence, advanced analytics and digital client experiences. Yet many initiatives fall short not because of the technology, but because of the underlying data foundation. For numerous institutions, Avaloq is the operational backbone of the bank, but much of the data held within it remains locked in silos.
1. The Shift to Data-Driven Banking
Banks are evolving from process-driven organisations into data-driven enterprises. Management expects real-time transparency, regulators demand reliable information and clients increasingly expect more personalised advice. Data is therefore no longer simply a by-product of banking processes. It has become a strategic asset.
Banks that can use their data effectively are better placed to improve decision-making, increase productivity and create the conditions for innovation.
2. Why Avaloq Should Remain Focused on Core Banking
Avaloq performs its role as a core banking platform exceptionally well. It processes transactions reliably, represents accounts and portfolios, supports regulatory processes and provides the stability required for day-to-day banking operations.
That is precisely why it should not also be expected to serve as a data warehouse, reporting platform and AI engine. Modern architectures separate operational processing from analytical workloads, protecting the core while giving data-intensive use cases an environment designed to scale.
3. The Role of a Modern Data Cloud
Snowflake complements Avaloq as a central data and analytics platform. Through the Avaloq Standard Interface, data can be transferred in a standardised way and combined with information from other relevant sources.
The result is a shared data foundation for Management, Finance, Risk, Compliance and the Front Office. Instead of relying on individual interfaces and repeated manual data preparation, banks can establish a scalable foundation for consistent analysis across the organisation.
A modern architecture protects the core by separating operational processing from analytics and AI.
4. Four Business Priorities
- Management reporting: Consistent KPIs and faster access to decision-relevant information support quicker, more confident decisions.
- Risk and Compliance: Transparent, reliable data supports regulatory reporting, anti-money laundering processes and risk analysis.
- Client intelligence: Banks can identify the profitability of individual client segments, refine advisory approaches and support cross-selling in a more targeted way.
- AI readiness: High-quality, historical and well-governed data creates the conditions required for productive and responsible AI applications.
5. Governance as a Competitive Advantage
Trust is built not only through security, but through traceability. Banks need to know where data comes from, how it has been processed and who is authorised to access it. A modern Data Cloud supports these requirements through capabilities such as data lineage, role-based access controls, quality monitoring and transparent governance.
This does more than support compliance. It can make compliance processes more efficient while strengthening confidence in the information used for business and regulatory decisions.
AI is only as effective as the quality, governance and accessibility of the data behind it.
6. A Pragmatic Path Forward
Successful institutions begin with clearly defined use cases – for example, executive dashboards, client profitability or data quality monitoring. Measurable value builds internal acceptance and creates a sound basis for extending the platform gradually into further areas.
This approach reduces risk and accelerates return on investment. The objective is not to introduce technology for its own sake, but to create a scalable data foundation that supports tangible business outcomes.
7. ON-POINT Connect Brings Business and Technology Together
As an Avaloq Associate Implementation Partner and Snowflake Partner, ON-POINT Connect brings together deep banking and Avaloq expertise with modern data architecture capabilities. This combination allows us to work at the point where operational banking requirements and data-driven transformation meet.
Our focus is not simply on implementing a platform. We help banks translate business priorities into practical solutions – from defining the target architecture and shaping robust data models through to delivering measurable use cases that create value for the organisation.
Executive Summary
The future of data-driven banking does not begin with a new core banking platform. It begins with using the data that already exists more intelligently. Avaloq remains the trusted operational core for banking processes, while Snowflake provides the scalable data platform for analytics, reporting and AI. The Avaloq Standard Interface connects the two environments in a standardised way.
Banks that adopt this architecture consistently create the foundations for better decisions, greater efficiency, regulatory confidence and the successful application of artificial intelligence.
Looking Ahead
The strategic discussion should therefore not centre on whether a bank needs more data. The more important question is how existing data can be turned more quickly into insight, decisions and measurable business value.
Banks that modernise their data architecture today are building the foundations for more resilient processes, stronger client experiences and sustainable competitiveness.
Key Takeaways
- Avaloq remains the reliable operational core for banking processes.
- Snowflake provides a scalable data foundation for reporting, analytics and AI.
- The Avaloq Standard Interface connects both environments in a standardised way.
- A use-case-led approach enables banks to demonstrate value quickly and scale with confidence.
- Trusted, well-governed data is the foundation for better decisions and productive AI.
At ON-POINT, we combine deep Avaloq expertise with modern data architecture capabilities to help banks turn existing data into measurable business value. Reach out to Frank Lehmann to start the conversation.