Asia Pacific (APAC) is one of the world’s most dynamic banking markets, home to both fast-growing digital challengers and established incumbents. Yet, the region’s diversity—spanning mature economies, emerging markets, and a patchwork of regulatory regimes—means that core modernization journeys here are uniquely complex. Banks in APAC must navigate not only the technical hurdles of legacy transformation, but also a landscape shaped by local data residency laws, evolving privacy expectations, and a rapidly digitizing customer base.
The imperative for core modernization in APAC is clear. Legacy systems are increasingly unable to keep pace with the demands of digital-first customers, the need for real-time data, and the pressure to launch new products quickly. At the same time, regulatory scrutiny is intensifying, with authorities across the region tightening requirements around data localization, privacy, and operational resilience. For banks, the risk of standing still is growing: operational costs rise, innovation stalls, and the ability to respond to market or regulatory change is diminished.
Unlike more homogenous markets, APAC’s regulatory environment is highly fragmented. Each country imposes its own rules on data residency, cloud adoption, and privacy. For example, regulators in markets like Singapore and Australia have embraced cloud, provided strict controls are in place, while others—such as India and Indonesia—mandate that certain data must remain within national borders. This diversity requires banks to design modernization programs that are both globally scalable and locally compliant.
Culturally, APAC’s banking customers are among the world’s most digitally engaged, yet expectations vary widely. In some markets, mobile-first experiences are the norm; in others, traditional branch banking still plays a significant role. Successful modernization programs must therefore be flexible, supporting omnichannel engagement and rapid localization of products and services.
Cloud-native core banking platforms—such as those from Thought Machine and Mambu—are transforming the modernization journey for APAC banks. These platforms offer composable, API-first architectures that allow banks to assemble best-of-breed solutions tailored to local needs. Critically, they support:
By leveraging SaaS-based platforms, banks can avoid the heavy upfront investment and ongoing maintenance costs of legacy systems, freeing resources to focus on customer experience and growth.
Given the risks of “big bang” migrations, APAC banks are increasingly adopting a coexistence model—running legacy and new core systems in parallel. This approach allows for incremental migration of products and customers, minimizing disruption and enabling continuous learning. Key enablers include:
This phased approach is particularly valuable in APAC, where regulatory approval for major system changes can be time-consuming and where customer expectations for uninterrupted service are high.
With data residency and privacy laws varying by market, APAC banks must design modernization programs with compliance at their core. This means:
A robust data strategy is also essential, enabling banks to unlock real-time insights, support AI-driven personalization, and meet evolving reporting obligations.
No single technology or provider can address the full spectrum of needs in APAC’s complex environment. Successful banks are building curated ecosystems of partners—including fintechs like Thought Machine and Mambu, as well as cloud and data specialists—to deliver holistic, future-ready solutions. These partnerships empower banks to:
Modernization in APAC is not just a technology challenge—it’s an organizational transformation. Success depends on:
With over 30 years of digital innovation experience, deep partnerships with leading fintechs, and a proven track record across APAC, Publicis Sapient is uniquely positioned to help banks navigate the region’s modernization maze. Our customer-centric approach, stress-tested methodologies, and regulatory expertise ensure that transformation programs deliver measurable value—at speed and scale.
The future of banking in APAC belongs to those who can adapt, innovate, and put the customer at the center of everything they do—while meeting the region’s unique regulatory and operational demands. Whether you’re looking to modernize your core, launch new digital products, or build a data-driven organization, Publicis Sapient is your partner for what’s next.
Connect with our experts to start your APAC core modernization journey.