In a strategic move to modernize its tech backbone and scale for growth, Flagstar Bank has teamed up with IT solutions provider Mphasis to launch a next-gen data center infrastructure—marking a major step in its 18-month transformation into a top U.S. regional bank.

The new data center, developed in close collaboration with Mphasis, is designed to support Flagstar’s mission-critical systems, tighten operational controls, and strengthen risk resilience. But it’s not just a hardware upgrade—it’s a playbook for modern banking infrastructure in a post-legacy world.

“This is more than an infrastructure upgrade,” said Christopher P. Higgins, CIOO of Flagstar. “It’s an investment in operational resilience, enhanced security, and scalable efficiency.”

Building the Digital Core for a Modern Regional Bank

The data center represents a clear pivot toward a hybrid cloud future—modular, scalable, and purpose-built to handle shifting customer demands and emerging risks. Mphasis, known for its cloud-first approach and deep fintech expertise, brings technical muscle to the table, helping Flagstar retire outdated infrastructure and embrace more dynamic, cost-effective operations.

Key benefits of the data center strategy include:

• Performance & Scalability – Faster, more responsive customer experiences driven by modern architecture
• Security & Risk Management – Advanced tooling and design guardrails to meet evolving cyber threats
• Cost Efficiency – Long-term savings through infrastructure rationalization and resource optimization
• Operational Agility – A modular setup that allows faster rollout of new services and innovations

“This step enhances performance and gives us the flexibility to innovate faster,” said Jason Pope, CTO of Flagstar. “We’re better equipped to meet evolving customer and market needs.”

A Broader Trend in Fintech Modernization

The move aligns with broader industry shifts: regional banks are racing to shed legacy systems, move to cloud or hybrid models, and better withstand the pressure of cybersecurity threats, regulatory compliance, and shifting customer expectations.

Mphasis’ involvement highlights the growing reliance on specialized IT partners to not only implement cloud-native infrastructure but also ensure financial institutions stay compliant, secure, and competitive.

“This program sets a benchmark in banking infrastructure,” said Rohit Jayachandran, Head of BFS at Mphasis. “It reflects a wider trend—banks are building secure, agile, scalable systems to support growth and innovation.”

Flagstar’s data center reboot isn’t a flashy tech demo—it’s a foundational reset. In a digital-first era where speed, resilience, and trust are currency, the bank is betting on infrastructure as its competitive edge.

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