INSIDE THE SHIFT TO CLOUD-NATIVE CORE BANKING; BUILDING THE BANK OF TOMORROW

Responses attributed to Amr Kandel, GCC Country Manager and Product Director, Fimple

How is the shift towards cloud-native core banking changing the way financial institutions in the GCC approach technology modernisation?

The biggest change is that banks are moving away from the idea that modernisation has to mean replacing everything at once.

In the GCC, we’re seeing more interest in a progressive approach, introducing new products, capabilities or customer journeys while continuing to use existing systems where they still make sense. Cloud-native and composable architecture makes that much more practical.

Unlike systems that are simply moved from on-premises infrastructure into the cloud, cloud-native architectures are designed so that capabilities can be deployed, updated and scaled more independently. This allows institutions to upgrade selected areas without having to tie every change to a large transformation programme.

GCC institutions also have to consider regulatory requirements, data governance and local market needs. It is not simply about moving systems to the cloud. Banks need to decide where data and capabilities should sit, how they are governed and how the overall environment remains resilient.

What are some of the key technology limitations of legacy core banking systems that GCC banks are looking to overcome today?

There are a few challenges that come up quite consistently.

The first is speed. Many legacy platforms were designed around batch processing, so getting a current view of the customer or making decisions in real time can be difficult.

The second is fragmented data. Customer information and banking capabilities can sit across different systems for deposits, lending, payments, cards and other services. That creates complexity and makes it harder to deliver a consistent customer experience.

The third is product agility. With heavily customised and hard-coded systems, launching a new product or changing an existing one can take months.

And finally, there is integration. When every new fintech, payment provider or ecosystem partner requires another point-to-point integration, the technology environment becomes harder to manage.

For GCC institutions, the challenge is not simply to replace an old system. It is to reduce dependencies and create a more flexible foundation that makes integration, localisation and regulatory change much easier to manage.

Fimple takes an API-first approach to core banking. How does this architecture help financial institutions integrate emerging technologies and third-party services more efficiently?

In an API-first architecture, integration is part of the platform from day one rather than something added afterwards.

At Fimple, core banking capabilities such as accounts and deposits, lending, payments and limits can be accessed through APIs. That makes it much easier for financial institutions to connect channels, fintech partners, wallets, payment providers and other services.

These services are designed to be accessible and reusable. Instead of building a completely different integration every time a new partner comes in, institutions can use the same underlying architecture and governance model.

This approach is particularly relevant in the GCC because every market has its own ecosystem and local requirements. Banks need the flexibility to connect to local payment infrastructures, regulatory services and fintechs without rebuilding their core every time.

As banks increasingly adopt AI and automation, what role does a modern core banking platform play in enabling these technologies at scale?

AI is moving from something that sits around the bank to becoming part of how it operates.

Today, many institutions already use AI for functions like customer assistants, fraud detection, document processing or analytics. However, scaling AI requires a strong foundation underneath it.

AI needs access to accurate and timely data, clearly defined business rules and secure ways to interact with banking capabilities, with the right controls and human oversight.

At Fimple, we see the next step as agentic AI interacting with banking capabilities through secure APIs and controlled workflows. An AI agent could, for example, support an onboarding process, assist with servicing, or work within a lending or payment process while the bank still controls what the agent is allowed to do.

The goal is not simply to make a core banking platform AI-enabled. The real opportunity is to build a platform that is AI-ready by design.

How important is interoperability in the GCC financial ecosystem, particularly as banks, fintechs and digital financial platforms become increasingly connected?

Banks, fintechs, wallets, payment providers and digital platforms across the GCC are becoming more connected, and customers expect their experiences to work together.

For financial institutions, that means the ability to work securely with partners is becoming a business capability, not just an IT requirement.

There is also an important GCC dimension here. The GCC may be viewed as one market from a broader economic perspective, but each country has its own regulatory environment, payment infrastructure and requirements. Institutions need a common foundation that can still accommodate those differences.

This is where composable, API-led architecture can help. Institutions can connect capabilities, launch new propositions and adapt to local requirements without redesigning the entire banking platform each time.

Ultimately, interoperability gives financial institutions the flexibility to participate in the wider ecosystem rather than trying to build everything themselves.