To decide which option works best for them, banks must understand the capabilities and gaps in the existing platform, consider their business strategy and objectives, their risk appetite, innovation objectives, and the complexity of their data management strategy. Any modernization effort must also keep in mind that the future of business involves being part of an ecosystem or becoming an ecosystem provider. It must help the business move in this direction. Open banking needs state-of-the-art systems that support user experience-based banking models. This calls for a cloud-native platform that can leverage microservices-based architecture and a robust application programming interface (API) framework that can ensure easy integration with various internal and external services. Cloud-native platforms can support a pay-per-use subscription model and will be easy to maintain and upgrade in the future. Banks embarking on the core modernization journey are also looking at deploying advanced technologies like artificial intelligence, machine learning, natural language processing, and IoT to improve processes and facilitate innovation and drive growth. The core modernization approach must be able to support these technologies.
