Successful CIAM Transformation in Banking for a Global US Bank

Onaware replaced a legacy SSO with a modern CIAM platform for a global US bank, cutting costs by 40% and closing critical compliance gaps.

How it started

A major US-based global bank was struggling with an outdated legacy single sign-on (SSO) system. The platform had become costly to maintain, created compliance gaps, and introduced security risks. These issues were compounded by regulatory pressure from SOX and PSD2, as well as rising expectations for a stable, scalable access management platform. For reference, the SEC’s SOX compliance guidance highlights the critical role of robust identity controls in financial services.

The legacy solution was no longer fit for purpose, leaving the bank vulnerable to audit findings and customer dissatisfaction. A modern Customer Identity and Access Management (CIAM) solution was required to reduce risk, improve stability, and lower costs.

The Results

The results delivered clear business outcomes and measurable improvements for both compliance and customer experience.

The adoption of an open source CIAM solution resulted in a 40 percent reduction in operational costs, freeing the bank from expensive vendor licensing and annual support fees.

From a regulatory standpoint, the programme closed outstanding audit findings and established controls that aligned directly with SOX and PSD2. This gave auditors and regulators renewed confidence that identity risks were being properly managed.

For customers, the benefits were just as significant. Performance and stability improved across digital services, with fewer outages and faster authentication. Customers enjoyed smoother access to their accounts, which strengthened trust in the bank’s digital channels and reduced friction in everyday banking.

Finally, governance was strengthened by standardising policies across regions and platforms. The bank could now manage customer access consistently and securely at a global scale, ensuring long-term sustainability of the solution.

The Full Story

Legacy Challenges

The bank’s legacy single sign-on solution had been in place for more than a decade. Over time it had become both costly and fragile. The high annual licensing and support fees placed a strain on budgets, while the outdated architecture created recurring compliance gaps. Audit findings were appearing year after year because the system could not keep up with evolving regulatory requirements under SOX and PSD2.

Stability was also a growing issue. Customers were experiencing inconsistent access to digital banking services, with outages creating unnecessary frustration and operational risk. For a global bank, even short interruptions had the potential to damage customer trust and undermine its reputation. Leadership recognised that the system had reached the end of its useful life and needed to be replaced with a modern CIAM platform.

Designing a Modern CIAM Solution

Onaware began the engagement with a comprehensive assessment of the environment. This provided a clear picture of where compliance and security weaknesses were most severe. Working with the bank’s senior stakeholders, we designed a roadmap to address these gaps and deliver a modern Customer Identity and Access Management platform.

A strategic decision was made to adopt an open source platform. This offered the flexibility the bank needed and avoided the heavy licensing costs of large commercial vendors. The new architecture was designed to be scalable, resilient and directly aligned with regulatory requirements. It also placed customer experience at the centre, ensuring that stronger security would not come at the expense of usability.

Migration and Execution

The replacement programme was delivered over 18 months. To minimise risk, we recommended a phased migration of customer applications. High-risk and high-value services were migrated first to reduce compliance exposure, while lower-risk services were addressed in later phases.

Remediation was carried out in parallel to close compliance gaps identified during the initial assessment. Policies were standardised so that customer access could be governed consistently across regions and digital channels. This not only reduced risk but also ensured that customers experienced the same level of service regardless of where or how they accessed the bank.

For customers, the impact was immediate. Login times improved, access became more reliable and incidents of downtime were significantly reduced. The new CIAM platform provided a smoother and more secure experience, strengthening trust in the bank’s digital channels.

Building Long-Term Value

The project delivered far more than a technical upgrade. By closing audit findings and ensuring compliance with SOX and PSD2, the bank rebuilt confidence with regulators and external auditors. The move to an open source platform cut operational costs by 40 percent, removing an unnecessary financial burden and freeing resources for future investment.

For customers, the transformation meant stable, reliable and seamless access to digital banking services. Outages and service interruptions were dramatically reduced, while authentication became faster and less intrusive. The end result was a more consistent and trusted digital experience that matched customer expectations of a global bank.

Our work on this programme reflected the same principles applied in other complex financial services projects, such as Identity security for a top 5 global bank and Recovery assessment for a European financial services client. Each engagement demonstrates how Onaware helps financial institutions overcome the barriers of legacy systems and deliver identity solutions that are secure, compliant and customer-focused.

By the end of the 18-month programme, the bank had a modern CIAM platform that was secure, stable and sustainable. It provided measurable cost savings, stronger compliance and a foundation the bank could build on for future growth. Most importantly, customers benefited from faster access, improved stability and a seamless digital experience that strengthened their relationship with the bank.