Financial services organizations—banks, insurers, and asset managers—are at a pivotal crossroads. Decades of incremental technology investments have left many with a tangled web of legacy systems, siloed data, and mounting technical debt. In fact, global estimates put the accumulated tech debt across major enterprises at up to $2 trillion, with financial services bearing a disproportionate share. This burden is more than a technical liability; it’s a strategic threat that hinders innovation, operational efficiency, and the ability to deliver secure, personalized experiences at scale.
Through extensive industry engagement and executive roundtables, five critical forms of “debt” have been identified as the primary barriers to AI-driven modernization in financial services:
Addressing these debts holistically is essential for rapid, sustainable AI value creation. Publicis Sapient’s work with leading institutions, such as Deutsche Bank, demonstrates how tackling these debts—by building AI/ML catalogs, modernizing data infrastructure, and driving new business models—lays the foundation for enterprise-scale AI adoption.
AI is not just another tool in the modernization toolkit—it is the catalyst capable of dismantling even the most persistent forms of tech debt. Over 80% of senior executives in financial services believe AI is the breakthrough needed to overcome entrenched technical debt. However, technology alone is not enough. Success demands a shift in mindset, delivery models, and operating architecture.
A key insight from recent research is the emergence of “services-as-software”—a new paradigm where technology, not just people, delivers services. For financial services, this shift is critical. Traditional IT services often focus on maintaining legacy systems rather than driving transformation. AI-led service models, by contrast, enable:
Three in four enterprise leaders now expect a pivot from staff augmentation to services-as-software, and 71% are ready to switch providers for better AI execution and leadership. The message is clear: financial institutions that fail to embrace AI-driven modernization risk being left behind.
AI-driven modernization is already delivering measurable impact across the financial services value chain:
Customer expectations in financial services have never been higher. AI enables hyper-personalization—tailoring products, services, and interactions to individual needs and behaviors. Banks and insurers are deploying AI-powered recommendation engines, proactive service bots, and omnichannel experiences that build trust and loyalty. These innovations require robust data strategies and secure, compliant platforms.
Despite the promise of AI, many financial institutions remain stuck in the experimentation phase. Key barriers include:
To move from pilots to production, financial services leaders must:
Publicis Sapient’s proprietary platform, Sapient Slingshot, is purpose-built to address the unique challenges of financial services modernization. Slingshot automates and accelerates complex software processes—from prototyping and code generation to testing, deployment, and maintenance. It embeds industry and technical expertise to modernize outdated code and streamline new development, supporting every stage of the software development lifecycle. With Slingshot, financial institutions can achieve:
The future belongs to financial institutions that can break free from tech debt and harness AI as a driver of innovation, efficiency, and customer value. By addressing technology, data, process, skills, and cultural debts in tandem, banks, insurers, and asset managers can move from incremental change to enterprise-scale transformation.
Publicis Sapient stands as a trusted partner for this journey—combining deep industry expertise, proven frameworks, and a relentless focus on outcomes. With AI as the catalyst, financial services organizations can rewrite the rules of modernization and lead the next wave of industry innovation.
Ready to smash through tech debt? Let’s talk about your modernization journey.