Temenos CTO Rohit Chauhan has outlined a strategic shift in how financial institutions should approach core banking modernisation, speaking at the Temenos Community Forum. Rather than pursuing aggressive wholesale platform replacements, Chauhan advocates for gradual modernisation using composable modules that reduce the “blast radius” of implementation risks and technical debt accumulation.
The approach directly affects banks and financial services firms currently weighing expensive legacy system overhauls against operational continuity concerns. Chauhan stressed that modernisation should never be viewed as a finite project but as continuous evolution, requiring institutions to adopt forward-looking planning that anticipates future technological shifts rather than merely addressing current gaps.
This methodology allows institutions to maintain service stability while incrementally updating infrastructure, potentially reducing project failure rates that have historically plagued large-scale banking technology transformations. The composable architecture model enables targeted updates without systemwide disruption.
FXnCO Insight
Financial institutions should reassess budgets and timelines to accommodate ongoing modernisation expenditure rather than one-time capital projects, fundamentally changing how technology investment is structured and measured.
Source: Finextra