MENA Banks Race to Modernise Core Systems for Digital Future
The Middle East and North Africa (MENA) region's banking sector is undergoing rapid transformation, driven by digital adoption and a young, tech-savvy population. Banks are under pressure to enhance personalisation, accessibility, and integration while maintaining compliance and resilience. Core banking modernisation is a top priority, with regulators and sovereign wealth funds pushing for modern, customer-first experiences.
Traditional methods of replacing entire core systems at once often lead to failure, high costs, and operational disruption. Instead, progressive, phased modernisation is recommended to transform legacy systems while mitigating risk. This approach allows banks to address hidden inefficiencies and gain end-to-end control of customer relationships.
Speedboat strategies are emerging as a practical method to accelerate digital delivery without overhauling legacy systems entirely. These strategies enable banks to modernise their core banking systems step-by-step, derisking the process. AI is increasingly embedded throughout the front, middle, and back office, improving decision-making, risk monitoring, and operational efficiency. Modernisation requires a combination of business and technological strategies, including adopting composable microservices and hybrid cloud infrastructures.
In the evolving banking landscape of the MENA region, core banking modernisation is crucial for banks to meet customer expectations and regulatory demands. Progressive, phased approaches, such as speedboat strategies, along with AI integration and technological advancements, are key to successful transformation. By addressing legacy systems' hidden inefficiencies and enabling end-to-end customer control, banks can enhance their competitiveness and resilience.
