How Can Banks Launch New Products Without Replacing Their Core?

The inherent challenge for banks in developing new financial products stems from the slow pace of change within incumbent core banking systems. Institutions traditionally encounter three options: waiting months for core vendor modifications, implementing temporary solutions that accrue technical debt, or undertaking a multi-year core system replacement. This inability to launch quickly can be particularly impactful in markets with growing credit demand, such as the Philippines, where consumer loans increased by 19.6% year-on-year in April, even as bad loans also rose.

A product engine aims to mitigate these issues by functioning as a lightweight layer alongside the existing core infrastructure. It allows an institution's internal teams to configure and manage new product lines, including loans, credit cards, and digital accounts, independently. This approach is intended to provide modern core banking features, such as dynamic limits and real-time risk decisions, without the operational disruption of a full core overhaul, thereby shifting control of product iterations from third-party vendors back to internal teams.

The integration of AI within this framework is positioned as a solution to overcome data silos, which the company argues impede AI projects. By having the product engine run the products, operational data becomes accessible across governed layers, enabling AI to work with live information and for its decisions to take effect in a controlled manner. This structure supports various development methods, no-code for rapid configuration, low-code for API integrations, and custom code for proprietary logic, while reporting high performance metrics for the engine itself, including 99.98% uptime and handling 8,800 transactions per second.