In a bid to modernize aging enterprise software, London- and Budapest-based startup Kodesage has raised $6.6 million in seed funding. The company's mission is to help financial institutions, particularly banks and insurers, upgrade their legacy systems without compromising on security or data sovereignty. Notably, Kodesage's AI-driven modernization platform operates entirely on-premise, ensuring sensitive data remains within the organization’s own infrastructure.
Legacy Systems in Financial Services
The most critical software in a bank often runs on systems that have been in place for decades. Technologies like COBOL and Oracle Forms, once the backbone of enterprise applications, are still actively used today, even though they’re increasingly difficult to maintain and update. These systems, while reliable, are often opaque and lack modern development practices, making them a challenge for institutions trying to adapt to digital transformation.
On-Premise AI for Secure Modernization
Kodesage’s solution addresses this challenge by offering AI-powered tools that can analyze, refactor, and modernize legacy code—without ever leaving the organization’s internal network. This approach is especially appealing to regulated industries like finance, where data privacy and compliance are paramount. By keeping everything on-premise, Kodesage ensures that sensitive financial data never leaves the building, aligning with strict regulatory requirements.
The startup’s platform is designed to automate many of the manual and error-prone processes involved in legacy system modernization, offering a faster, more scalable alternative to traditional methods. With this new funding, Kodesage plans to expand its team and accelerate product development to meet growing demand from financial institutions looking to future-proof their infrastructure.
