The countdown to 2027 is well underway. With SAP ECC 6.0 reaching end-of-support end 2027, Financial institutions must transition to SAP S/4HANA to ensure continued support and maintenance by SAP Fioneer - in other words ongoing system stability and access to innovation. Beyond the necessity of upgrading, this transition presents a strategic opportunity for financial institutions to modernise and future-proof their core banking systems. SAP S/4HANA introduces significant enhancements, from improved performance and real-time insights to cloud-readiness.
For organisations using SAP Loans Management (LM) and Collateral Management (CMS) on SAP ECC, the transition is not just about upgrading - it’s about adapting to fundamental changes in architecture.
A successful migration requires a well-structured approach. Financial institutions must determine whether they will pursue a like-for-like technical migration or leverage the transition for a broader business transformation. This decision impacts system architecture, operational efficiency, and long-term scalability.
One of the critical considerations is whether to deploy SAP S/4HANA on-premise or in the cloud. Each option has cost, security and agility implications, which must align with the FSI’s overall IT strategy. Additionally, custom developments in ECC need to be assessed for compatibility with SAP S/4HANA, while functional differences - particularly in CMS - must be identified and mitigated. Interfaces with external applications, data migration strategies, and licensing implications require meticulous planning to avoid costly missteps.
FSIs using Collateral functionality face an additional challenge: the embedded variant, where Collateral functionality was part of the Loans Management application, is no longer supported. This means they must implement the new SAP CMS module from scratch, requiring a full-scale re-implementation to comply with the updated architecture and functionality.
Existing ECC Loans Management customisations must also be reviewed and adapted using SAP S/4HANA’s Simplification List to retain and optimise business-critical functionalities.
Additionally, SAP has replaced traditional Business Warehouse (BW) extractors with Core Data Services (CDS) views, necessitating a redevelopment of data extraction processes. Without proper planning, these changes could disrupt reporting, analytics, and decision-making processes.
Choosing the right partner is crucial for a seamless and efficient SAP S/4HANA migration. As co-developers of the standard SAP Financial Services solutions, we are uniquely positioned to become your trusted partner for this project.
For 25 years, we have specialised in helping financial institutions navigate complex SAP transformations with minimal disruption and maximum business value. Our dedicated Financial Services Industry (FSI) Migration team has successfully executed migrations for 50 top Global Financial Institutions with a 100% success rate. Our deep expertise in SAP Loans Management (LM) and Collateral Management (CMS) ensures a seamless conversion, whether you choose a technical migration or a broader business transformation.
We understand that time is of the essence. With the end of 2027 fast approaching, early planning is crucial to avoid last-minute disruptions. Our tailored approach helps FSIs define the optimal migration strategy, safeguarding compliance, and the ability to leverage SAP S/4HANA’s full potential. We have the expertise, tools, and proven processes to guide you through a structured and efficient transition - ensuring business continuity, compliance, and a future-proofed ERP environment.
Ready to explore your SAP S/4HANA roadmap? Get in touch with us.
