In today’s digital-first banking landscape, legacy technology is more than a technical inconvenience—it’s a strategic barrier. As customer expectations soar and regulatory demands intensify, banks are under mounting pressure to modernize their core applications, streamline operations, and deliver seamless digital experiences. Yet, entrenched legacy systems, siloed data, and complex compliance requirements continue to slow progress. Generative AI (GenAI) is emerging as a transformative force, offering banks a practical, scalable path to overcome these barriers and accelerate their journey to a modern, agile, and secure technology environment.
Legacy applications remain the backbone of many banks, supporting critical operations and compliance. However, these systems:
Recent studies show that nearly 70% of banking leaders believe legacy systems are hindering their ability to deliver the digital experiences customers expect. With only a small fraction of banks considered true digital transformation leaders, the need for a new approach is urgent.
Generative AI is redefining what’s possible in banking modernization. Unlike traditional automation, GenAI leverages large language models to understand, refactor, and generate code, automate testing, and create documentation with human-like reasoning. For banks, this means:
Banks embracing GenAI are seeing measurable results: modernization costs reduced by over 50%, defect rates halved, and migration speeds increased by up to 70%. These are not theoretical gains—they are being realized in real-world banking engagements.
Banks operate in one of the most regulated environments. GenAI, when deployed with robust governance, can automate compliance validation, generate audit trails, and ensure modernization aligns with evolving regulatory standards. Leading banks are investing in custom AI tools to maintain control over data privacy and compliance.
Siloed data is a persistent challenge. GenAI-powered platforms can analyze and map data flows across legacy and modern systems, facilitating seamless integration and enabling a 360° view of the customer—critical for both personalization and regulatory transparency.
With cyber threats on the rise, security must be embedded from the start. GenAI tools in the software development lifecycle can identify vulnerabilities, recommend secure coding patterns, and automate remediation. Banks are also leveraging AI to monitor for anomalous behavior and ensure new applications meet stringent security standards from day one.
While GenAI accelerates modernization, human expertise remains essential. The most successful banks blend AI-driven automation with skilled developers, architects, and compliance specialists who provide domain context, validate AI outputs, and ensure alignment with business goals. This human-in-the-loop approach is especially important in regulated environments, where explainability and accountability are paramount.
Publicis Sapient’s work with leading banks demonstrates the tangible benefits of GenAI-powered modernization:
Publicis Sapient’s proprietary platforms, such as Sapient Slingshot, are designed to accelerate every stage of the modernization journey:
The next wave of digital transformation in banking will be defined by those who can modernize at speed, scale, and with confidence. GenAI is not a silver bullet, but when combined with the right strategy, platforms, and expertise, it is a powerful accelerator. Banks that move decisively—investing in both technology and talent—will be best positioned to deliver the agility, security, and customer-centricity that define the future of financial services.
Ready to accelerate your bank’s modernization journey? Publicis Sapient’s deep banking expertise, proven AI platforms, and strategic partnerships make us the partner of choice for banks seeking to overcome legacy barriers and lead in the GenAI era.