The Coreless Revolution: Rethinking Banking Architecture for Customer-Centricity

Why Coreless Banking Matters Now

The banking industry stands at a pivotal crossroads. Customer expectations are evolving at breakneck speed, shaped by seamless, personalized experiences in other sectors. Yet, many banks remain constrained by legacy core systems—rigid, product-centric architectures that silo data and stifle innovation. The result? A widening gap between what customers want and what banks can deliver.

Enter the coreless revolution. This emerging approach to banking architecture is not about eliminating core systems altogether, but about fundamentally reorienting the bank’s technology and operating model around data and the customer—not around products or legacy platforms. By decoupling critical business capabilities from monolithic core systems, banks can break down product silos, unify data, and deliver the seamless, hyper-personalized experiences today’s customers demand.

What Is Coreless Architecture?

Coreless architecture represents a paradigm shift. Instead of the traditional model—where each product line (such as mortgages, current accounts, or loans) is supported by its own stack of technology, data, and processes—coreless banking places data at the center. Business capabilities are delivered as modular, API-driven services that can be orchestrated and recombined to support any customer journey, across any channel.

In practice, this means:

Unified Data Layer: Customer data flows freely across the organization, enabling a 360-degree view and powering real-time insights.
Decoupled Capabilities: Product, servicing, and engagement functions are delivered as independent, reusable services—not locked into a single core system.
Orchestration Layer: A flexible orchestration layer coordinates these services, allowing banks to rapidly assemble new products, journeys, and experiences.
Open Ecosystem: APIs enable easy integration with fintechs, partners, and third-party services, expanding the bank’s value proposition.

The Drivers of Coreless Transformation

Several forces are converging to make coreless banking not just possible, but essential:

Rising Customer Expectations: Customers expect tailored, frictionless experiences at every touchpoint. They want banks to anticipate their needs, not just react to transactions.
Legacy Complexity: Decades of product-centric growth have left banks with fragmented systems and data silos, making it difficult to innovate or even maintain existing services efficiently.
Cost Pressures: A growing share of IT budgets is spent on mandatory change—just keeping the lights on—rather than on innovation. Coreless models promise to reverse this trend by reducing legacy costs and accelerating time-to-market.
Competitive Threats: Digital-first challengers and tech giants are redefining what’s possible in financial services. To compete, incumbents must match their agility and customer-centricity.

How Coreless Enables Customer-Centricity

The coreless approach is a direct enabler of customer-centric transformation. By unifying data and decoupling business capabilities, banks can:

Break Down Product Silos: Customers are no longer seen as holders of discrete products, but as individuals with evolving needs. For example, a customer applying for a mortgage can be instantly recognized as a soon-to-be homeowner, unlocking relevant offers for insurance, budgeting tools, or home services.
Deliver Seamless Journeys: No matter where a customer starts—mobile app, branch, or partner channel—their data and context travel with them, enabling consistent, personalized experiences.
Accelerate Innovation: New products and features can be launched rapidly by orchestrating existing services, rather than building from scratch or waiting for core system upgrades.
Promote Real-Time Engagement: With unified data and modular services, banks can identify opportunities and respond to customer needs in real time, both within and beyond traditional financial services.

Making the Transition: Practical Guidance

Transitioning to a coreless architecture is a journey, not a leap. Success depends on a pragmatic, risk-managed approach:

Start with the Customer: Identify high-impact journeys where breaking down silos and unifying data will deliver immediate value.
Pilot and Prove: Launch pilots on new platforms or for specific segments to demonstrate value and build confidence.
Progressive Scaling: Gradually expand the coreless model, carefully managing risk and ensuring customer and business continuity.
Reimagine Operating Models: Shift from product-centric teams to cross-functional, customer-focused squads empowered to own end-to-end journeys.
Invest in Data and APIs: Build a robust data foundation and open API ecosystem to enable flexibility and future growth.

Publicis Sapient: Your Partner in the Coreless Revolution

At Publicis Sapient, we have seen firsthand how coreless architecture can unlock agility, innovation, and customer-centricity for banks of all sizes. Our global experience shows that the most successful transformations are those that put data and the customer at the heart of every decision, leveraging modern technology and new ways of working to deliver real business outcomes.

We help banks:

Define a clear vision and roadmap for coreless transformation
Design and implement unified data and API strategies
Orchestrate modular business capabilities for rapid innovation
Reimagine operating models for cross-functional, customer-centric delivery
Manage risk and change throughout the journey

The Future Is Coreless—and Customer-Centric

The coreless revolution is more than a technology shift; it’s a new way of thinking about what a bank can be. By reorienting around data and the customer, banks can finally break free from the constraints of legacy systems, deliver the experiences customers expect, and compete—and win—in a digital-first world.

Are you ready to rethink your banking architecture for the future? Let’s start the journey together.