Why Core Modernisation Can Never Be Fully Complete

Why It Matters

The approach lets banks reduce transformation risk while rapidly delivering AI‑enabled services, crucial for retaining customers in a fast‑changing digital banking landscape.

Key Takeaways

• Composable modules let banks modernize core gradually, reducing risk.
• Piece‑by‑piece upgrades cut project timelines from years to months.
• Continuous modernization aligns with evolving customer expectations and AI integration.
• Legacy monoliths hinder change; bite‑size modular steps are safer.
• Success is a moving horizon; banks must adopt progressive, iterative transformation.

Summary

The video from Temenos Community Forum 2026 features CTO Rohit Chauhan discussing composability as a strategy for banks to tackle legacy core systems.

He explains that Temenos' new composable modules for retail deposits and lending enable banks to extract functionalities from monolithic cores, install side‑by‑side, and achieve faster, lower‑risk modernization. This incremental approach shrinks blast radius, improves scalability, and can deliver results in months rather than years.

Chauhan emphasizes that modernization is never finished; it’s a perpetual journey driven by customer demand for instant data and AI‑powered interactions. He notes that “the final stage is for what the customers want,” and that banks should adopt bite‑size changes, practice, learn, and avoid big‑bang overhauls.

For the industry, this mindset shifts investment from massive, risky projects to continuous, modular upgrades, accelerating time‑to‑market and keeping banks competitive as technology evolves.

Original Description

Joining FinextraTV at the Temenos Community Forum, Rohit Chauhan, Chief Technology Officer, Temenos discussed the impact of composability on the ability to overcome technical debt. He explained the benefit of a gradual core modernisation, using composable modules, compared with standard, more aggressive approaches, enabling the 'blast radius' of the problem to feel smaller. He emphasised the need to see modernisation as an ongoing process that should always be centred around the need to move forward to the next horizon. With this in consideration, Chauhan encourages a futurist style of thinking, with an eye on what will happen in the future, in order to begin adapting to it today.

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