![FIS Bank Modernization: Framework to Cut Tech Costs | [Year] Update](https://www.pymnts.com/wp-content/uploads/2025/09/FIS-bank-modernization.png "FIS Bank Modernization: Framework to Cut Tech Costs | [Year] Update")
Beyond Core Modernization: How Banks are Rebuilding for the Future
Banks today face a critical juncture. It’s no longer enough to simply update the core banking systems; institutions must undergo a complete modernization to remain competitive and meet evolving customer expectations. This shift is driven by rising costs, increasing regulatory demands, and the disruptive force of FinTech innovation.
FIS,a leading financial technology provider,recently unveiled a new framework designed to help banks navigate this complex transformation. This isn’t a one-size-fits-all solution, but a strategic investment tailored to each bank’s unique situation.
The Pressure is On
Several factors are converging to create an urgent need for modernization:
* Rising IT costs: IT expenses are projected to increase by 9% annually, putting important strain on bank budgets.
* AI compliance: New regulations surrounding artificial intelligence require robust and adaptable systems.
* FinTech Competition: Agile FinTech companies are rapidly gaining market share by offering innovative, user-pleasant experiences.
* Changing Customer Expectations: Consumers, particularly younger generations, demand seamless digital experiences.
“Banks are no longer focused on just modernization of the core, but rather modernization of the bank,” explains Peter Boyer, FIS senior vice president/interim head of banking.This holistic approach recognizes that true transformation requires addressing both back-end processing and front-end customer interfaces.
Why Customary approaches Fall Short
Traditional modernization projects are often perceived as too risky and expensive. Legacy systems, fragmented processes, and manual workflows hinder agility and scalability. Many organizations find themselves stuck in a “cash flow time warp,” as wendy Tapia, head of product, receivables at FIS, describes it.
The reality is, the pace of change is accelerating. If yoru organization relies on outdated systems, you risk falling behind.
Gen Z and the Future of Banking
The need for modernization is particularly acute when considering the preferences of generation Z. Recent PYMNTS research reveals this demographic is disciplined with their finances, but less inclined to use traditional financial institutions.
They’re drawn to frictionless experiences offered by digital wallets, apps, and peer-to-peer transfer platforms. Ignoring this trend is a gamble. If banks don’t adapt, they risk losing a generation of customers who see no compelling reason to return to ”older, slower systems.”
A Tailored Approach to Transformation
FIS’s new framework emphasizes a customized approach. It’s “grounded by each client’s specific needs and strategic goals,” allowing each institution to begin its modernization journey from a point that aligns with its current technological maturity.
This means:
* Assessment of Existing Infrastructure: A thorough evaluation of your current systems and processes.
* Strategic Goal Alignment: Identifying how modernization can support your overall buisness objectives.
* Phased Implementation: A roadmap for gradual, manageable changes.
Ultimately,modernizing your bank isn’t just about keeping up with the times. It’s about building a future-proof foundation for growth, innovation, and customer loyalty. It’s an investment in your institution’s long-term success.
Resources:
* PYMNTS: Gen Z Financial Trends
* PYMNTS: Banks Face Loyalty Crisis
* PYMNTS: CFOs Stuck in Cash Flow Time Warp
* [PYMNTS: AI Compliance Requirements](https://www.pymnts.com/news/regulation/2025/why-firms-need-compliance-built-for-machine
