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Why most core banking modernization programs fail — and how to avoid it

EDFC,Amsterdam - March 5, 2026

John Mason, Senior Vice President – Client Strategy

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Zafin’s AI powered platform compliments your tech stack

Zafin Overview

Our platform integrates with key ecosystem providers, to enable banks to rapidly deploy capabilities that will deepen customer relationships and drive personalized experiences, improved decision-making, and optimized operations across the organization.

Who we complement

Core Banking System:

HOGAN

SYSTEMATICS

Customer Engagement and Marketing Channels

Collaboration or Workflow Application

Connectors & Accelerators

Integrate with an ecosystem of partnerships that speed up your time to business value.

Product Catalog

Rates & Fees

Proposition Manager

Product & Pricing Manager

Analytics

Signals

Tiering

Dynamic Cohorts

Zafin Core Capabilities

Disclosures

Promocodes

Zafin Enablers

Integrate and Orchestrate (zIO)

AI Integration

Doc Canvas

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PRE INTERNET ERA

Traditional banking

WEB & MOBILE FIRST ERA

Digital banking revolution

FUTURE ERA

The future of banking is upon us

The eras of modern banking

PRESENT ERA

Customer driven banking revolution

Branch distribution of static products

Community driven client relationships

Digital distribution of static products

Commodity driven client relationships

Hyper-personalized propositions distributed digitally

Dynamic product designs that adapt to customers

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Moving from customer awareness to customer obsession

In a recent study by Bain & Company, 81% of respondents say that the higher the bank’s ability to personalize, the more positive is their customer NPS.

81%

Of customers want personalization from their bank*

* Used with permission from Bain & Company

Offering hyper-personalized products and services is imperative to build lasting customer relationships

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The different modernization journeys

Incremental modernization is the only approach a bank can take that delivers meaningful benefits at each step

Chart on left with bullets on right

Big-Bang

Digital Face-Lift

Incremental Modernization

Big Bang: Solely focusing on the transformation (or replacement) of the bank’s tech ecosystem

Digital Face-Lift: Bank focuses solely on the digital experience to customers

Incremental Modernization: recognizing ROI at each step

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Product innovation and the future of banking

Leverage the full ecosystem of strategic partners, working together to build the future of banking

Customer value: Deliver hyper personalized propositions consisting of banking and nonbanking products and services to meet and exceed customer demands. Resulting in customers realizing the true value of their relationship with their bank

A banks’ competitive advantage requires change to underlying platforms that enable product and product structures, pricing and propositions

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Four messages about the future of banking you should remember …​

Banking does not have a future proof business model, and the markets expect it �will continue destroying value

A new, promising pattern is emerging – banks will need to become open platforms and participate in broader ecosystems

Current and future core banking systems are unlikely to support such magnitude of change; most practical path could be to focus the evolution outside of the core

To get there, the banking IT stack will have to undergo a magnitude-level improvement in terms of interoperability, distribution and speed to market

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Through a multi-thin core model, banks will unlock several key benefits crucial �to modern banking …

Increased business agility

Create market-leading products and pricing strategies faster than ever

Thin core

Modernize core systems by hollowing out marketable attributes

Tailored customer engagement

Deliver hyper-personalized value propositions to drive customer loyalty

Analytics & AI

Leverage advanced analytics and generative AI to create “out-of-the-box” value propositions

Go beyond banking

Enable seamless integration �with third-party solution providers �to expand beyond traditional �banking services

Orchestrated API ecosystem

Centrally managed with unified data �flows and standardized integration protocols

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Relationship-focused banks are investing in technology transformation

EDFC

How Zafin helps

Simplification: bringing the right products to market, at the right price, with speed

  • Understand their product
  • Externalize products
  • Unify products
  • Intelligence on product pricing
  • Bundling & Packaging products
  • Tracking & transaction transparency

Personalization: personalized propositions & driving member behaviour

  • Complete view of the member relationship
  • Customer tiering (driving rewards and pricing) to build loyalty and deepen member engagement

Platformization: 1:1 member-obsessed loyalty across the Financial Institution

  • Rewarding members for activity across the institution (FI-wide rewards)
  • Hyper-personalized offers to members
  • Micro-rewards to drive positive member behaviours (e.g., build debt-free credit)
  • Ecosystem flywheel: link retail & commercial relationships to reinforce loyalty and value across both sides of the FI
  • Integrates, compliments and enables tech stack (e.g., Backbase, Adobe)

Product Bank

Ecosystem Bank

Relationship Bank

Bank Personas

Product-first, operationally efficient, limited personalization

Customer-focused with personalized engagement and loyalty

Embedded, AI-driven, and ecosystem-enabled

Maturity

Today

2-3 years

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Over the next 12-18 months, banks will encounter the moment of choice

Remain a product-centric bank and face the growing risk of:

  • Margin erosion as ‘commodity’ products lose value
  • Fading customer loyalty
  • Become a background-only participant in the platform economy

WAIT

Remain a product-centric bank and face the growing risk of:

  • Margin erosion as ‘commodity’ products lose value
  • Fading customer loyalty
  • Become a background-only participant in the platform economy

ACT

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Thank you!��www.zafin.com

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