Regional Spotlight: Core Banking Modernization in Asia-Pacific (APAC)

The APAC Banking Landscape: A Hotbed of Innovation and Challenge

Asia-Pacific (APAC) is at the epicenter of banking transformation. The region’s financial institutions—ranging from established incumbents to nimble challengers—are navigating a landscape defined by rapid digital adoption, evolving customer expectations, and a complex regulatory environment. APAC banks are not just keeping pace with global trends; in many cases, they are setting them, pioneering new models for core banking modernization that are reshaping the future of financial services.

Unique Pressures and Opportunities in APAC

• Diverse Regulatory Environments: Each market, from Singapore to Thailand to Australia, has its own regulatory requirements, particularly around data residency and cloud adoption. Navigating these is essential for successful transformation.
• Legacy Technology Constraints: Many mid-tier and incumbent banks are hampered by aging core systems that limit agility and drive up costs, while new entrants leverage cloud-native platforms to leapfrog legacy constraints.
• Customer-Centric Innovation: APAC consumers are among the world’s most digitally savvy, demanding seamless, personalized, and embedded financial experiences—often delivered through super-apps and ecosystem partnerships.
• Talent and Change Management: The pace of change requires banks to upskill their workforce and manage complex change programs, balancing the need for speed with operational resilience.

Regional Trends: Accelerating Toward Digital-First Banking

Across APAC, several trends are shaping the modernization journey:

• Cloud-Native, Composable Architectures: Banks are moving away from monolithic legacy systems toward cloud-native, API-first platforms such as Mambu and Thought Machine. This composable approach enables rapid product launches, easier integration with fintech partners, and compliance with local regulations.
• Agile Delivery and Coexistence: Rather than risky “big bang” migrations, APAC banks are embracing coexistence—running legacy and modern cores in parallel and migrating products and customers incrementally. This reduces risk and allows for continuous innovation.
• Ecosystem Partnerships: Success in APAC increasingly depends on building a curated ecosystem of technology and fintech partners. By leveraging best-in-class solutions for payments, data, and customer engagement, banks can deliver holistic, future-ready experiences.
• Data-Driven Personalization: With exploding volumes of structured and unstructured data, banks are investing in platforms that enable real-time insights and hyper-personalized services, unlocking new value for customers and the business.

Real-World Impact: Case Studies from the Region

Rapid Transformation in Thailand:

A leading Thai retail bank undertook a full-scale digital transformation, unifying all account types and empowering customers to manage their finances seamlessly. By leveraging a cloud-native core and agile delivery, the bank launched a unified digital experience in just 12 weeks—demonstrating the speed and impact possible with the right approach.

Siam Commercial Bank (SCB):

SCB accelerated its digital banking rollout by launching a one-stop cloud and DevOps solution. This streamlined developer processes and enabled faster, more efficient innovation, positioning the bank as a digital leader in the region.

Composable Banking Across APAC:

Banks across the region are integrating SaaS platforms like Mambu to assemble tailored, composable architectures that meet local needs and regulatory requirements. This has enabled the launch of new digital propositions in record time, supporting both greenfield digital banks and the modernization of established players.

Publicis Sapient’s Approach: Tailored for APAC

Publicis Sapient brings a proven methodology and deep regional expertise to core banking modernization in APAC:

• SPEED Methodology: Our agile, multidisciplinary teams help banks move from idea to launch at breakneck speed, identifying customer pain points, prototyping solutions, and integrating new platforms with minimal disruption.
• Ecosystem Partnerships: We work with leading technology providers—including Mambu, Thought Machine, Form3, and Snowflake—to deliver holistic solutions that address the full spectrum of banking needs.
• Regulatory and Legacy Integration: Our teams ensure all solutions meet local compliance standards and integrate seamlessly with existing systems, minimizing risk and accelerating time-to-value.
• Customer-Centric Transformation: We help banks harness data and AI to deliver real-time insights and personalized experiences, putting the customer at the center of every transformation.

Practical Guidance for APAC Banks

• Start with a Clear Vision: Define business goals and customer outcomes. Modernization is a business transformation, not just a technology upgrade.
• Embrace Coexistence: Avoid risky, all-at-once migrations. Run legacy and new cores in parallel, migrating incrementally to minimize disruption.
• Leverage Accelerators: Use proven frameworks and accelerators to reduce time-to-market and avoid common pitfalls.
• Prioritize Data: Ensure data is accessible and ready for real-time use, unlocking the potential for AI-driven insights and personalized services.
• Partner for Success: Work with transformation partners who bring deep industry knowledge, regulatory expertise, and a robust ecosystem of fintech collaborators.

Why Publicis Sapient?

• Modernize their core efficiently and cost-effectively
• Accelerate time-to-market for new products and services
• Harness data and AI for real-time insights and personalized experiences
• Compete—and win—against larger incumbents and digital challengers

With over 30 years of digital innovation experience, 100+ financial services clients, and a network of 40+ technology partners, Publicis Sapient is the partner of choice for APAC banks seeking to:

Ready to Accelerate Your Transformation?

The future of banking in APAC 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.