Core Banking Modernization

Redefining a bank or credit union’s strategy for long-term growth often begins with core technology modernization.

While outdated technology is often the catalyst for change, building strong provider relationships plays a vital role. Understanding your vendor’s strategic roadmap and vision for the future is essential to building a partnership that supports future innovation.  

Technology limitations that create inefficiencies, hinder innovation, and hurt the bottom line are the bellwethers to digital transformation. Although the primary focus of every modernization effort is the technology itself, the choice of delivery partner cannot be understated. The three most common core providers in the marketplace are Fiserv, FIS, and Jack Henry - often referred to as the "Big 3." While each vendor takes a unique approach to driving core modernization and their solutions promise significant benefits to community banks and credit unions, they also come with their own set of challenges and potential pitfalls. 

Fiserv

The $93B company announced its Core Advance platform as the “next phase” in its legacy of innovation. Intending to help financial institutions upgrade their core systems in a more flexible, scalable, and real-time manner, Fiserv endeavors to modernize its Premier bank platform and migrate other legacy core clients to the new system.  

While Core Advance may offer significant advantages, including an improved technology stack, moving thousands of existing Fiserv clients to the next-gen platform is not without its obstacles. One of the biggest challenges Fiserv faces is the scale required to migrate and manage the transition, especially when one considers the diversity and range of institutions involved, from large banks with complex requirements to smaller community institutions with simpler needs. Another major hurdle is the need to customize the platform for each institution. Although Core Advance is modular and flexible, large banks with highly customized systems need tailored solutions. Integrating existing data, third-party applications, and custom workflows can make migrations take longer and increase costs. 

To ensure a smooth transition to Core Advance, Fiserv must minimize the risk of service interruptions, transaction errors, and regulatory issues. The company also needs to certify that partnerships with third-party providers and fintech integrations transfer seamlessly to the new platform. Because most banks rely on numerous external integrations, coordinating these migrations adds further complexity. 

FIS

FIS rolled out its FIS Modern Banking Platform in 2020. The solution is built around a cloud-native, API-first architecture and designed to offer flexibility, scalability, and speed. The platform is modular, allowing financial institutions to choose the components they need and implement them without requiring a total overhaul of the system. The platform’s API-first strategy stands out for enabling seamless integration with third-party fintech solutions, making it easier for banks and credit unions to innovate and introduce new products and services.  

At the recent FIS Emerald Client Conference in May 2025, the $53B company reintroduced its Affinity Edge core banking platform as a modernized upgrade to its long-standing Miser system. While specific details remain limited, Affinity Edge is a system-in-development worth watching, especially as FIS continues a broad push toward core banking modernization. 

While each vendor takes a unique approach to driving core modernization and their solutions promise significant benefits to community banks and credit unions, they also come with their own set of challenges and potential pitfalls.

Jack Henry

Jack Henry is redefining core modernization with a componentized cloud platform designed for financial institutions. This approach empowers banks and credit unions to select and implement only the core banking services they need, without the disruption or cost of a full system replacement. By enabling incremental upgrades, financial institutions can modernize at their own pace, integrating new capabilities while preserving existing infrastructure. 

A key strategic pillar is Jack Henry’s commitment to open APIs and web services, making it easier for banks and credit unions to connect with third-party solutions and fintech partners. This open ecosystem not only streamlines integration but also supports the delivery of modern, mobile-first banking experiences that today’s customers expect. Central to this strategy is Jack Henry’s collaboration with Google Cloud, which provides the robust infrastructure necessary for secure, scalable cloud-first services. 

Another significant advancement for the $12B company is its introduction of Data Hub. The platform offers a standardized, expandable data repository, supporting advanced analytics and data-driven decision-making. While the modular, componentized approach delivers flexibility and customization, it is important to consider the potential for increased complexity in the technology stack. Effective management and optimization will be key to realizing the full benefits of this modernized, cloud-based environment.  

Conclusion 

Core modernization is no longer optional for banks and credit unions - it is essential for long-term success. Leading providers like Fiserv, FIS, and Jack Henry are driving significant change in core banking, each offering distinct approaches. However, upgrading a core system is a complex journey, with real risks such as integration challenges, operational disruptions, and data migration hurdles. 

To navigate this transformation successfully, partnering with an experienced advisor is critical. The right advisor brings strategic insight, proven change management expertise, and tailored guidance to help plan effectively, minimize risks, and ensure a smooth transition. By engaging a trusted advisor, banks and credit unions can modernize their core systems confidently and position themselves for sustained growth and relevance in a rapidly evolving financial landscape.