Coreless Banking in Canada: Modernizing Legacy Systems for the Open Banking Era

The Open Banking Mandate: A Defining Moment for Canadian Banks

Canada’s financial sector is on the cusp of a generational transformation. With the 2025 open banking mandate fast approaching, Canadian banks face a non-negotiable regulatory deadline that is set to reshape the industry. This mandate requires financial institutions to enable secure, standardized data sharing with accredited third parties, empowering consumers, fostering competition, and driving innovation. For CIOs, CTOs, and transformation leaders, the challenge is clear: modernize legacy core systems to meet regulatory requirements, or risk regulatory scrutiny, reputational damage, and loss of market share to more agile competitors.

The Challenge: Legacy Core Systems and the Risks of Inaction

Despite Canada’s reputation for financial stability and robust regulatory oversight, many banks are still reliant on aging, monolithic core banking systems. These platforms are costly to maintain, difficult to integrate, and ill-suited to the demands of real-time data sharing, rapid product innovation, and seamless ecosystem integration required by open banking. The risks of failed modernization are significant:

Regulatory non-compliance leading to penalties and reputational harm
Operational disruption during attempted migrations
Loss of market share to fintechs and digital-first challengers
Inability to launch new products or business models at speed

Coreless Banking: The Path to Agility, Resilience, and Compliance

Coreless banking offers a pragmatic, future-ready solution. By decoupling critical banking functions from the legacy core and adopting modular, cloud-native architectures, Canadian banks can achieve the agility, scalability, and resilience required for the open banking era. This approach enables:

Incremental modernization: Migrate functions at your own pace, reducing risk and disruption
Seamless integration: Leverage APIs and microservices to connect with fintechs, payment providers, and ecosystem partners
Accelerated innovation: Launch new products and services faster, responding to evolving customer needs and regulatory requirements
Operational efficiency: Streamline processes, reduce costs, and free up resources for strategic initiatives

Regulatory Drivers: Security, Privacy, and Interoperability

Canada’s open banking framework is characterized by a strong emphasis on security, privacy, and interoperability. Banks must not only enable secure data sharing and seamless integration with third-party providers, but also ensure robust compliance with evolving standards. The regulatory environment, underpinned by laws such as PIPEDA, demands:

Secure APIs and token-based authentication
Continuous monitoring and automated compliance controls
Transparent data usage and clear consent mechanisms
Data residency and privacy protections

The Publicis Sapient Approach: De-Risking Modernization, Accelerating Value

Modernizing the core is a complex, high-stakes endeavor. Publicis Sapient’s proven playbook for Canadian banks emphasizes:

Early risk identification and mitigation: Address technical, regulatory, and reputational risks systematically
Fit-for-purpose governance: Balance centralized planning with agile, decentralized delivery
Safe, incremental migration: Prioritize coexistence models to ensure business continuity
Automated, real-time compliance controls: Embed monitoring and reporting into every stage
Talent and change management: Upskill teams and foster a culture of continuous learning and innovation

Sapient Slingshot: Accelerating and De-Risking Core Modernization

Publicis Sapient’s proprietary AI platform, Sapient Slingshot, is purpose-built to de-risk and accelerate core modernization for Canadian banks. Slingshot automates and streamlines the software development lifecycle—from code generation and testing to deployment and maintenance—enabling:

Up to 99% code-to-spec accuracy: Delivering high-quality, reliable software that meets regulatory and business requirements
Shortened time-to-market: Enabling development cycles in days, not months, so banks can meet the 2025 mandate and stay ahead of competitors
Reduced technical debt: Upgrading legacy systems with confidence and future-proofing infrastructure
Freeing up teams to innovate: Automating repetitive tasks so talent can focus on customer-centric innovation

Unlocking New Business Models and Customer Value

Coreless banking is not just about compliance—it’s a launchpad for new business models and customer-centric innovation. By embracing modular, cloud-native architectures, Canadian banks can:

Deliver personalized, omnichannel experiences that meet the expectations of digital-native consumers
Collaborate with fintechs and ecosystem partners to offer innovative products and services, from embedded finance to Banking-as-a-Service (BaaS)
Leverage data for growth: Gain richer insights into customer needs and behaviors, enabling smarter decision-making and targeted engagement
Create multi-sided platforms: Move beyond traditional product silos to facilitate collaboration and data monetization

Why Publicis Sapient?

With decades of experience in digital business transformation and a proven track record in Canadian financial services, Publicis Sapient is uniquely positioned to guide banks through the complexities of coreless banking and open banking compliance. Our approach is grounded in:

Local expertise: Deep understanding of Canadian regulatory environments, customer behaviors, and market dynamics
End-to-end capabilities: From strategy and consulting to technology, experience design, and data & AI
Proven methodologies: Our SPEED framework accelerates transformation, helping banks modernize their core, harness the cloud, and deliver new products and services at speed
Security and compliance: Embedding cybersecurity and privacy best practices into every solution

Ready for the Future of Canadian Banking

The 2025 open banking mandate is more than a compliance challenge—it is a launchpad for the next era of Canadian financial services. By embracing coreless banking, leveraging tools like Sapient Slingshot, and partnering with Publicis Sapient, Canadian banks can not only meet regulatory requirements but also lead the market in customer experience, innovation, and growth.

Let’s build the future of Canadian banking—together.

Ready to start your coreless banking journey? Connect with Publicis Sapient’s Canadian financial services experts today.