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Coreless Banking Is the Future: Here’s How to Get There | Publicis Sapient

Coreless Banking Is the Future: Here’s How to Get There

For decades, banks have run core banking systems (CBS) that control a huge range of essential functions. But the era of sprawling, “maximalist” core systems that absorb everything from payee information to regulatory reporting has run its course. Banking technology is undergoing a profound transformation leading to an entirely different—‘minimalist’—approach to CBS architecture.

A modern CBS bears virtually no resemblance to existing legacy systems. Where previous generations of CBS ran a huge range of functions, modern systems have stripped away all but the most fundamental, leaving a core comprising just accounts, transactions and product definitions. In today’s “coreless” banking architecture, everything else sits outside this stripped-down set of functions, connecting to them via APIs.

The advantages of this architecture are significant. Because functions are separated out and linked via APIs, innovation in each area is set free. Banks can innovate faster and choose the best tools—proprietary or external—or each function. Without a conventional core, the coreless bank can accelerate innovation and transform the customer experience.