Why modularity is a strategic imperative 

Financial institutions today must accelerate product launches, improve operational efficiency, and lower their cost-to-serve—without compromising the stability of their core systems. Yet, the notion of replacing an entire banking platform remains daunting, prohibitively expensive, and often unrealistic.

That’s why modular, API-first architectures are gaining traction. These allow banks to modernize incrementally rather than embarking on full-scale core replacements. Institutions can start with high-pressure areas like lending, payments, onboarding, or CRM, and expand their modernization journeys from there. On their own terms and timelines.

Composable banking isn’t about tearing everything down. It’s about building forward from what works, decoupling from what doesn't, and enabling agility through loosely coupled, interoperable components. This strategic shift empowers banks to innovate faster, respond more effectively to market demands and reduce vendor lock-in.

This "head start" approach is key to building momentum. It reduces risk, improves ROI and gives financial institutions control over their own pace of change, not dictated by vendors or monolithic roadmaps. 

According to Gartner over 65% of banks plan to adopt composable architecture by 2026³ as the demand for business agility and faster innovation cycles continues to rise. 

Resilience in an unpredictable world 

This transformation isn’t just a technical shift, it’s a response to an increasingly unstable global environment. 

At a recent Akkuro hosted event in Amsterdam, Jaap de Hoop Scheffer, former NATO Secretary-General, shared insights on the state of today’s geopolitical landscape. He highlighted the growing complexity institutions must navigate - from economic shocks to security disruptions to climate-driven instability - and urged all sectors, including financial services and local government, to build systems that are not only strong but adaptable. The central message was clear: the ability to prepare for multiple scenarios at once is no longer optional, it is an operational necessity. 

Akkuro-jaap-de-hoop-scheffer-future-ready-financeJaap de Hoop Scheffer, Former NATO Secretary-General, shares key geopolitical insights at an Akkuro event in Amsterdam.

This is particularly relevant for banks, which sit at the nexus of economic stability and societal trust. As inflation, climate-related shocks and digital sovereignty concerns rise, banks must ensure their operating models are resilient and can respond in real time to shifting threats and needs. 

A shift in mindset 

The challenges facing the financial sector today are no longer limited to profitability or product. They are systemic, intertwined with broader economic and political volatility. To meet this moment banks need more than digital tools, they need a transformation model that allows them to grow while staying resilient, to act fast without breaking structure and to modernize without losing continuity. 

What’s required now is a shift in mindset - from building for stability alone to building for flexibility - from maintaining infrastructure to adapting it continuously. That is the path forward, not just for banks but for every institution navigating uncertainty. 

  1. https://ibsintelligence.com/ibsi-news/core-banking-crisis-55-of-banks-cite-legacy-systems-as-top-barrier-to-transformation
  2. https://techinformed.com/how-banks-can-reclaim-their-innovation-budgets
  3. https://www.gartner.com/smarterwithgartner/gartner-keynote-the-future-of-business-is-composable