Core Systems Without Core Pain: Why Composable Core Banking Is the Future
For decades, banks have been handcuffed by rigid, monolithic core systems—slow to evolve, costly to scale, and painful to integrate. But in a digital-first economy where agility defines survival, these legacy cores are no longer fit for purpose.
Enter composable core banking.
This modern architecture flips the script, allowing banks to assemble core capabilities like building blocks, plugging in best-of-breed solutions without tearing down the entire stack.
Why Traditional Cores Are Reaching Their Breaking Point
Legacy cores were built for stability, not flexibility. As a result, banks face:
- Long upgrade cycles that delay digital transformation
- Poor integration with new digital channels, fintechs, and APIs
- High switching costs that stifle innovation and lock in vendors
- Inability to personalise products quickly for evolving customer needs
This “core pain” becomes even more visible as challenger banks, neobanks, and digital-first players race ahead with cloud-native agility.
What Makes Composable Core Banking Different?
A composable core replaces the monolith with modular, API-driven components that work independently yet cohesively.
- Core as a set of capabilities, not a single system: Think: product engine, customer ledger, account servicing, compliance—all decoupled but interoperable.
- Plug-and-play innovation: New services (like real-time payments or digital KYC) can be integrated as microservices, without waiting for full-stack updates.
- Cloud-native elasticity: Composable cores scale effortlessly during high loads, cutting infrastructure costs and improving resilience.
- Configurable products, faster time-to-market: Banks can launch and tailor offerings in weeks, whether it’s a niche lending product or a personalised savings plan.
Who’s Already Moving This Way?
Global digital banks, regional players, and even large incumbents are shifting toward composable strategies:
- Goldman Sachs’ Marcus platform is built with a modular, service-based architecture.
- Mambu, Thought Machine, and 10x Banking offer composable platforms adopted by banks across Europe, APAC, and the Americas
- Tier-1 banks are decoupling product engines and ledgers to experiment without risking core stability.
Strategic Benefits for Bank Leaders
- Speed and control over product development
- Lower total cost of ownership through cloud-native efficiencies
- Greater vendor flexibility through open APIs and standards
- Resilience and security via distributed architecture and failover
Final Thought
Composable core banking isn’t just a tech upgrade—it’s a strategic enabler. By dismantling the old core pain, banks unlock faster innovation, deeper customer insight, and sustainable competitive advantage.
The future of banking isn’t monolithic. It’s modular.
Showcase Your Modular Core Solutions at NexGen Banking Summit 2025
Are you a provider of composable banking platforms, cloud-native cores, or modular fintech infrastructure?
This is your moment to connect with Tier 1 and mid-size banks going composable.
- Meet CIOs, Heads of Architecture, and Core Modernisation Leads
- Demo your platform in front of decision-makers exploring next-gen core strategies.
- Gain exposure through keynotes, panel discussions, and co-branded thought leadership.
London | October 15–16
New York | November 18
Redesign the core. Redefine the bank.