The banking landscape is evolving at an unprecedented pace. While large incumbents often dominate headlines with their multi-year, multi-million-dollar transformation programs, a new wave of mid-tier and challenger banks is quietly reshaping the industry. These institutions face a unique set of challenges: legacy technology that stifles innovation, limited resources compared to their larger peers, and the urgent need to deliver digital-first experiences that today’s customers demand. Yet, with the right strategy and partners, they are also uniquely positioned to leapfrog the competition and define the future of banking.
For many mid-sized and challenger banks, legacy core systems are a major barrier to growth. Outdated technology not only drives up operational costs but also limits the ability to launch new products, respond to regulatory changes, and deliver seamless digital experiences. According to recent industry research, outdated technology cost financial institutions $36 billion in 2022 alone—a figure expected to rise sharply in the coming years. The imperative is clear: modernize the core, or risk being left behind.
But modernization is not just about technology. It’s about rethinking the business model, embracing a digital-first mindset, and building a foundation that enables rapid innovation. For banks with limited resources, the path forward must be pragmatic, efficient, and focused on delivering measurable business value at every step.
Cloud-native core banking platforms like Mambu and Thought Machine are game-changers for mid-tier and challenger banks. Unlike traditional monolithic systems, these platforms offer a composable, API-first architecture that allows banks to assemble best-of-breed components tailored to their needs. This flexibility is crucial for institutions operating in diverse regulatory and customer environments, enabling them to:
By leveraging SaaS-based platforms, banks can avoid the heavy upfront investment and ongoing maintenance costs of legacy systems, freeing up resources to focus on customer experience and growth.
Transformation is complex, but it doesn’t have to be slow. Publicis Sapient’s SPEED approach and proprietary accelerators help banks move from idea to launch at breakneck speed. By assembling multidisciplinary teams—combining strategy, technology, UX, and creative expertise—and working in agile sprints, we help clients:
This approach was exemplified in our work with a leading Thai bank, where we delivered a full-scale digital transformation—including a new business model and robust technology foundation—in just 12 weeks. By building on Thought Machine’s core banking platform and leveraging agile delivery, the bank was able to launch a unified digital experience that adapts quickly to market changes and evolving customer expectations.
No single technology or provider can address the full spectrum of needs in today’s banking environment. That’s why Publicis Sapient brings together a curated ecosystem of best-in-class partners—including Mambu, Thought Machine, Form3, and Snowflake—to deliver holistic, future-ready solutions. These partnerships empower mid-tier and challenger banks to:
Our deep relationships with leading fintechs and cloud providers ensure that clients benefit from the latest innovations—without the risk and complexity of going it alone.
Mid-sized banks often face the dual challenge of navigating complex regulatory environments and integrating new platforms with existing legacy systems. Publicis Sapient’s proven methodology addresses these hurdles head-on:
With over 30 years of digital innovation experience, 100+ financial services clients, and a network of 40+ technology partners, Publicis Sapient brings unmatched expertise to core modernization. Our customer-centric approach, proven methodologies, and deep industry knowledge make us the partner of choice for mid-tier and challenger banks seeking to:
The future of banking belongs to those who can adapt, innovate, and put the customer at the center of everything they do. 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 discover how we can help you build the bank of the future—faster, smarter, and tailored to your market.