PUBLISHED DATE: 2025-08-15 15:22:30

Publicis Sapient

CORE MODERNISATION PLAYBOOK

Modernize your core bank in four clear steps.

The Core Banking Conundrum

There are two statements upon which almost every bank leadership team will agree:

  1. Their current core technology stack is struggling to keep up with the rapid shift to the digital-first, seamless interactions their customers, colleagues, and partners expect.
  2. Replacing these technologies is risky, complex, and expensive.

But the shift to modern core technologies is inevitable. Every year, banks are investing more and more time and money just to maintain the status quo. New regulations, rising digital expectations, and open banking are pushing legacy systems to the limit. Workarounds have made additional change riskier and more expensive. With increasing digital transactions and the rising customer expectation for personalized interactions and connected offerings, these challenges will only get harder to overcome.

Key Statistics:

The Case for Core Modernization

Replacing these core systems is no easy task. In the past, the easiest way for a CEO or CIO to lose their job was to propose a core system transformation and then fail to deliver it. The success stories are far outnumbered by the failures: programs that overran, overspent, and ultimately failed to achieve real value.

But times have changed. New technologies—from cloud, to coreless banking systems, to the surrounding ecosystem of SaaS solutions—have matured, been proven, and enable differentiated services. More progressive, iterative approaches to core modernization can significantly mitigate the transformation risks.

Put simply, the time to transform is now.

Benefits of a Modern Core Banking System:

A New Approach to Core Modernization

In this guide, we’ll lay out a new approach to a longstanding challenge. We’ll outline how you can modernize your current core technology stack and deliver the experiences your customers expect, while sidestepping the pitfalls that cause most modernization projects to fail.

You will:

And what’s more, we’ve broken down the process into four clear, actionable steps.

Your Four-Step Guide to Core Modernization

Welcome to your four-step guide to core modernization. At each step, we’ll list out the jobs you need to do and the pitfalls you need to avoid to deliver your modernization program without a hitch.

  1. Confirm your ambitions
  2. Mobilize the program
  3. Prove the platform
  4. Scale, progressively

Step 1: Confirm Your Ambitions

A successful modernization program begins with a clear and aligned ambition—one which everyone believes in and is committed to, from the board to the on-the-ground teams. Core modernization efforts fail when the ambitions are poorly defined or misdirected.

Avoid these critical mistakes:

Your Step-by-Step Guide:

Shape the Case for Change

Understand the Success Requirements

Ensure Leadership Team Commitment

Establish the Program Leadership Team

Step 2: Mobilize the Program

With your ambition set, you now need to ensure you set up the program for success: with the right people, the right roadmap, and the right vision for what can be achieved by when. Without the right preparation, modernization programs cannot succeed.

Watch out for these common preparation pitfalls:

Your Step-by-Step Guide:

Mobilize the Program Team

Confirm the Product Roadmap

Design the Coreless Architecture

Fast-Track Any Critical Enablers

Step 3: Prove the Platform

Now it’s time to deliver. It’s critical to prove the new platform via a ‘pathfinder’ which includes a customer-facing launch. Getting to market quickly builds belief in the new capabilities while enabling learning and continuous iteration through real experience. The first release is pivotal to proving the modernization program and learning for subsequent releases.

Watch out for these common pitfalls:

Your Step-by-Step Guide:

Shift into Action

Deliver the Pathfinder

(Re)shape the Post-Pathfinder Scaling Roadmap

Step 4: Modernize, Progressively

With the platform now proven, it’s time to accelerate its expansion and transition from the legacy onto the new modernized platform through a series of iterative releases. Ensuring the safe shift from legacy to modern platforms is a real challenge. It’s critical to prepare appropriately and ensure a full spectrum of levers are leveraged to mitigate risks.

Watch out for these additional pitfalls:

Your Step-by-Step Guide:

Expand the Coreless Platform

Scale the Modernization Factory

Sustain the Change

Core Modernization FAQs

Do I really need to modernize?

Yes. Not only do we see core modernization enable significant efficiencies—from automated processes to streamlined reporting—but also create new growth pathways for our clients. We believe within the next five years, a gulf will open up between those that have modernized, and those that have not.

Is it risky to build a coreless architecture?

There has been significant investment in the entire financial services technology space, dramatically improving the maturity of major software-as-a-service providers. The general integration patterns have been proven, and with the right engineering know-how, the critical foundational elements (such as the right API frameworks) can be quickly set up. The benefits from a coreless model now outweigh the costs.

Can you effectively mitigate the risks from migration?

It’s not easy, but it is possible. New technologies and approaches can make the process easier to manage. And getting commitment from the business and operational teams (in addition to the technology teams) ensures you can leverage a broader set of levers, such as enhanced product offerings, to incentivize voluntary rather than forced customer migrations. New UI/UX design patterns can also ensure the transition is seamless for customers.

How do you handle the dual-run interim state?

There are a variety of methods that can be used to support the build out of the new modern platform while running the existing capabilities. For example, we find it useful to establish a “model office” construct that runs any new functionality and grows as volumes on the new platform expand. Understanding the direction of travel for the future state, and the changes involved, ensures a strong understanding of the shifts required as volumes on the new platform increase. It’s also critical to be one step ahead of this transition: bringing in the right skills and capabilities to thrive in this future state.

What are the main reasons these programs tend to fail?

Often there is a failure of alignment across the senior leadership team on the modernization ambition. This is critical as success requires sustained commitment. It is then critical to ensure continuous releases—rather than “big bang” releases—as these build belief and prove the new model.

Speed and quality of delivery are, therefore, essential. Taking this approach, however, will challenge existing ways of working, so it’s critical to bring the organization along the modernization journey with regular communication and engagement to ensure understanding of the program, while also appropriately challenging the application of existing approaches to the new modernized world.

Let’s Start Your Core Modernization

While the opportunity to modernize the core of your bank might seem daunting, with the right planning and the right partners, you can position yourself for success. There will be challenges ahead. But staying focused on the big picture and maintaining your team’s enthusiasm and excitement will sustain you through the hard days.

Choosing the right partner is critical. Working alongside a partner with experience in creating modern coreless architectures helps you identify where you want to be, and navigate the complex journey to a more efficient banking model.

Success requires an ability to drive commitment to a clear modernization strategy, shape compelling new customer experiences, deliver the new platform at pace, and deploy best-practice modern engineering and data capabilities.

With success, you can harness the creativity on which the global tech giants rely, and more automation, greater personalization, and faster release cycles can help you realize the full power of digital transformation.

We’re ready to help you discover the exciting possibilities of core modernization. And with our experienced team, stress-tested methodologies, and our unique SPEED capabilities, we’ll work with you to create banking products that put your customers first.

SPEED Capabilities:

Contact:

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