Modernizing Payments: Coreless Banking for the Next-Gen Payments Landscape

The Payments Battleground: Why Modernization Matters

The payments ecosystem is undergoing a seismic shift. With a proliferation of payment methods, channels, and providers—from fintechs to tech giants—banks face unprecedented competition for customer relationships and transaction volumes. In this rapidly evolving landscape, the winners will be those who deliver seamless, invisible payment journeys that integrate effortlessly into customers’ lives. For banks, the imperative is clear: modernize or risk becoming the invisible “plumbing” behind more agile competitors.

The Case for Coreless Banking in Payments

Legacy payment systems, often built on decades-old technology, are struggling to keep pace with the demands of real-time, always-on digital commerce. These systems are costly to maintain, slow to adapt, and increasingly vulnerable to security threats and regulatory change. Coreless banking—powered by cloud-native, modular architectures—offers a transformative path forward. By decoupling payment processing from monolithic legacy cores, banks can:

• Accelerate innovation: Launch new payment products and services at speed, responding to market trends and customer needs in real time.
• Enhance resilience and scalability: Handle surges in payment volumes and integrate new channels without disruption.
• Reduce operational costs: Streamline processes, automate manual tasks, and minimize technical debt.
• Strengthen security and compliance: Embed advanced security controls and adapt quickly to evolving regulatory requirements, such as ISO 20022.

AI-Powered Modernization with Sapient Slingshot

At Publicis Sapient, we recognize that true modernization requires more than just new technology—it demands intelligence, agility, and a relentless focus on outcomes. Our proprietary AI platform, Sapient Slingshot, is engineered to accelerate every stage of the payments modernization journey:

• Automated code modernization: Slingshot leverages AI to refactor and upgrade legacy payment applications, reducing risk and accelerating timelines.
• Agentic AI for development and testing: By automating repetitive tasks and optimizing workflows, Slingshot enables engineering teams to focus on innovation and quality.
• Continuous compliance and security: AI-driven monitoring and controls ensure that payment systems remain secure, resilient, and compliant with the latest standards.
• Fraud prevention and operational efficiency: Advanced AI models detect and prevent payment fraud in real time, while intelligent automation streamlines operations and reduces manual intervention.

Seamless, Invisible Payment Journeys

Today’s customers expect payments to “just work”—whether they’re shopping online, splitting a bill, or managing business transactions. Coreless banking enables banks to deliver these invisible payment experiences by:

• Integrating payments into everyday digital journeys—from e-commerce to embedded finance.
• Personalizing payment options and experiences for both consumers and businesses.
• Ensuring instant, reliable, and secure transactions across all channels.

Modernizing the Payments Tech Stack

Modern payment ecosystems demand more than incremental upgrades. Banks must embrace:

• Cloud-native platforms: Migrate payment processing to scalable, resilient cloud environments.
• API-first architectures: Enable rapid integration with partners, fintechs, and new payment rails.
• Composable services: Unbundle core payment capabilities to support payments-as-a-service models, opening new revenue streams and business models.

Navigating Regulatory-Driven Change

Regulatory mandates—such as the global adoption of ISO 20022—are not just compliance hurdles; they are catalysts for innovation. Publicis Sapient helps banks:

• Assess the impact of regulatory changes on payment operations and customer experience.
• Leverage regulatory shifts to modernize infrastructure, unlock new data insights, and differentiate in the market.
• Ensure ongoing compliance through automated controls and real-time reporting.

Payments-as-a-Service: The Platform Advantage

The future of payments is platform-based. By adopting payments-as-a-service models, banks can:

• Outsource non-differentiating payment processing to trusted partners, reducing cost and complexity.
• Focus on customer experience and value-added services that drive loyalty and growth.
• Rapidly scale and adapt to new payment methods, channels, and regulatory requirements.

How Publicis Sapient Delivers Next-Gen Payments Modernization

With deep expertise in financial services transformation, Publicis Sapient partners with leading banks to:

• Modernize core payment processing: Replace legacy gateways, migrate to cloud-native systems, and enable real-time, 24/7 payments.
• Enhance security and fraud prevention: Deploy AI-powered solutions that detect and prevent fraud, safeguard customer data, and ensure regulatory compliance.
• Drive operational efficiency: Automate manual processes, streamline reconciliation, and reduce cost-to-serve.
• Accelerate time to market: Leverage proven accelerators, agile delivery, and a robust ecosystem of fintech partners.

Real-World Impact: Transformation at Speed and Scale

Our work with global banks demonstrates the power of coreless, AI-powered payments modernization:

• Rapid transformation: Banks have launched new digital payment platforms in as little as 12 weeks, enabling them to compete with digital-native challengers.
• Operational excellence: Clients have achieved up to 90% straight-through processing, dramatically reducing onboarding and transaction times.
• Fraud reduction: AI-driven solutions have delivered up to 95% reduction in targeted payment fraud types, protecting both customers and the bank’s reputation.
• Scalable innovation: Modular, cloud-native platforms support rapid rollout of new payment products and services, driving growth and customer loyalty.

The Road Ahead: Future-Proofing Payments

The payments landscape will only become more complex and competitive. By embracing coreless banking and AI-powered modernization, banks can:

• Deliver seamless, invisible payment journeys that customers love.
• Stay ahead of regulatory and security challenges.
• Unlock new business models and revenue streams.
• Future-proof their position in the payments ecosystem.

Ready to transform your payments business? Publicis Sapient stands ready to help you modernize, innovate, and win in the next generation of payments. Let’s build the future of payments—together.