Asia-Pacific (APAC) is at the epicenter of a banking revolution. As digital adoption accelerates and customer expectations soar, banks across the region—from Australia to Singapore and Hong Kong—are reimagining their core systems to stay competitive. The drive for core modernization is not just a technological imperative; it’s a strategic necessity for banks seeking to deliver seamless, personalized experiences and to compete with both global players and agile neobanks.
APAC’s banking landscape is as diverse as its markets. In Australia, regulatory scrutiny and a mature financial sector have pushed banks to prioritize resilience, security, and compliance as they modernize. Singapore and Hong Kong, as global financial hubs, face intense competition from both established international banks and a new wave of digital challengers. Across the region, regulatory requirements around data residency, cloud adoption, and open banking are shaping the pace and approach to transformation.
Banks must navigate a complex web of local regulations. For example, regulators in many APAC markets require that data centers for cloud services reside within national borders, driving hyperscalers to invest in local infrastructure. This regulatory environment, while sometimes slowing the pace of change, also ensures that modernization efforts are robust, secure, and tailored to local needs.
The COVID-19 pandemic acted as a catalyst, accelerating digital adoption across APAC. Customers now expect banking services to be available anytime, anywhere, and on any device. This shift has exposed the limitations of legacy core systems, which are often monolithic, inflexible, and costly to maintain. Banks that once focused on digitizing customer-facing channels are now turning their attention to the heart of their operations: the core.
Modernizing the core is enabling APAC banks to:
A defining feature of APAC’s modernization journey is the embrace of partnerships and cloud-native technologies. Rather than attempting risky, large-scale “big bang” migrations, many banks are adopting a phased, coexistence approach—running new cloud-native cores alongside legacy systems and migrating products and customers incrementally. This reduces risk, enables learning, and allows banks to deliver value faster.
Publicis Sapient’s work with Westpac in Australia exemplifies this approach. In partnership with 10x Banking, Publicis Sapient is helping Westpac transform its transaction banking and cash management solutions. By combining 10x’s cloud-native core platform with Publicis Sapient’s expertise in customer experience and service design, Westpac is building a future-ready banking platform that can scale, adapt, and differentiate in a competitive market.
This model of partnership is echoed across the region. Banks are leveraging ecosystems of fintechs, technology providers, and consultancies to accelerate their transformation. Cloud-native platforms—offered as managed services—allow banks to focus on what differentiates them: data-driven insights, innovative products, and superior customer experiences.
The rise of neobanks and digital challengers in APAC has raised the bar for customer experience and operational agility. Traditional banks, with their deep customer bases and established trust, are now leveraging modernization to close the gap. By adopting modular, API-driven architectures and embracing open banking, they can rapidly integrate new services, personalize offerings, and respond to market changes.
At the same time, global banks operating in APAC are investing heavily in core modernization to maintain their edge. The result is a dynamic, competitive environment where innovation is constant and the winners are those who can move fastest while managing risk and compliance.
Core modernization in APAC is not a one-time project—it’s a journey. Banks must continuously adapt their technology, operating models, and culture to keep pace with changing customer expectations and regulatory demands. Success requires a clear vision, strong leadership, and the right partners.
Publicis Sapient stands at the forefront of this transformation, helping APAC banks modernize their cores, harness the power of cloud and data, and deliver the experiences customers demand. Whether building a new digital bank in months or transforming a legacy institution, our approach is grounded in local insight, global expertise, and a relentless focus on business outcomes.
The future of banking in APAC belongs to those who can modernize at speed, innovate with purpose, and deliver value at every touchpoint. Discover how Publicis Sapient can help your organization lead the next wave of core modernization—and build the bank of the future, today.