Why It’s Time for Regional Banks to Rethink Their Core
Australia’s regional banks and credit unions are standing at a pivotal crossroads. A recent report by Victor Leung forecasts that the country’s core banking software market will nearly double by 2030, growing at a compound annual rate of 12.7%. This isn’t just a statistic, it’s a wake-up call. The message is clear: legacy systems are no longer fit for purpose in a world where customers expect real-time, personalised, and seamless digital experiences.
Analysis of Core Banking Market in Australia and New Zealand – Continuous Improvement
The drivers behind this transformation are multifaceted. First, there’s the regulatory shift. The Consumer Data Right (CDR) has ushered in a new era of data transparency and portability, forcing banks to open up their systems and rethink how they manage customer information.
Then there’s the competitive pressure from digital-first neobanks and fintechs, who are redefining what “good banking” looks like. Fast onboarding, intuitive interfaces, and proactive financial insights.
Finally, there’s the customer expectation revolution. People no longer compare banks to other banks, they compare them to Uber, Netflix, and Apple.
In this context, modernising the core isn’t just a tech upgrade. It’s a strategic imperative. Modern core platforms offer real-time processing, open APIs, cloud-native scalability, and the agility to launch new products in weeks, not years. But even with the best technology, transformation can fall flat if it doesn’t also reimagine how banks engage their customers.
Beyond the Core: The Engagement Gap
While many banks are investing heavily in infrastructure, they often overlook the “last mile” of digital transformation: customer engagement. It’s not enough to have a modern core if the front-end experience still feels transactional, impersonal, or uninspiring.
Moroku bridges this gap with a gamified engagement engine that sits atop modern cores and turns everyday banking into a rewarding, habit-forming experience. Think of it as the behavioural layer that makes digital banking not just functional—but delightful.
With Moroku, banks can deliver:
- Real-time financial coaching that nudges users toward better money habits.
- Open Banking-powered insights that give customers a holistic view of their finances.
- Digital lending journeys that convert in minutes, not days.
- Gamified experiences that reward users for saving, budgeting, and achieving financial goals.
This isn’t gamification for the sake of novelty. It’s grounded in behavioural economics and designed to drive real outcomes, like increased savings rates, reduced churn, and higher product adoption.
The Case for Regional Banks
For challenger and community banks and credit unions, the stakes are even higher. These institutions often have deep community roots and strong customer loyalty, but they risk losing relevance if they can’t keep up with digital expectations.
Moroku offers a way to modernise without losing identity. Its platform is modular, meaning banks can start small, perhaps with a gamified savings product or a digital lending workflow, and scale over time. It’s also highly customisable, allowing institutions to reflect their brand, values, and community focus in every interaction.
And because Moroku integrates seamlessly with leading core providers like Temenos, Mambu, and Thought Machine, it accelerates time-to-value without requiring a full-stack overhaul.
Lending Reinvented
Take lending, for example. Traditional loan applications are often slow, opaque, and paper-heavy. Moroku Lending changes that by digitising and gamifying the entire journey, from application to approval. Customers can apply online and receive conditional approval in under three minutes. Behind the scenes, agile workflows and real-time decisioning tools empower lenders to process applications faster and more efficiently.
But the real magic lies in how Moroku uses Open Banking to enhance serviceability assessments. By integrating with accredited data providers like Biza, the platform can securely access a borrower’s income, expenses, and liabilities directly from their financial institutions. This enables faster, more accurate decisions—and a smoother experience for the customer.
A Unified Financial View
Moroku also shines in the Personal Financial Management (PFM) space. Its Money platform aggregates all of a customer’s financial relationships, across banks, credit cards, loans, and investments—onto a single, intuitive screen. This unified view empowers users to understand their complete financial position in real time, without switching between apps.
By combining this data with gamified nudges and goal-based coaching, Moroku helps users build better money habits and stay engaged with their primary banking app. It’s a win-win: customers feel more in control, and banks become the central hub of their financial lives.
The Road Ahead
Core modernisation is a journey, not a destination. It requires vision, investment, and a willingness to rethink old paradigms. But it also offers immense rewards: faster innovation, deeper customer relationships, and a stronger competitive position in a rapidly evolving market.
Moroku doesn’t just help banks modernise their tech stack. It helps them reimagine their role in customers’ lives. By blending behavioural science, gamification, and cutting-edge technology, Moroku turns banking into something people want to engage with, not just something they have to do.