Visa is undertaking a significant initiative to rewire the foundational infrastructure of banks, addressing the limitations imposed by legacy core systems that are increasingly becoming impediments to innovation, particularly in the age of artificial intelligence (AI). Kathleen Pierce-Gilmore, senior vice president and global head of issuing solutions at Visa, highlighted during a recent conversation with PYMNTS CEO Karen Webster that while these older systems were designed for stability, accuracy, and scale, they now hinder banks’ ability to modernize, digitize, and effectively leverage AI.
AI Exposes Infrastructure as a Business and Risk Concern
The advent of AI has amplified the criticality of infrastructure decisions, transforming them into both business opportunities and significant risk factors. AI’s reliance on timely, governed data access clashes with the batch-based nature of many legacy environments. “If you don’t have well understood, well-managed, well-governed data, it’s going to be really hard to use AI,” Pierce-Gilmore stated. She described data silos within many banks as ‘data prisons,’ where information is trapped and cannot be mobilized for essential functions like analytics, personalization, or compliance.
This data fragmentation not only impacts customer experience but also complicates how banks demonstrate controls, monitor activities, and respond to regulatory inquiries in an AI-driven landscape. As regulatory expectations tighten, banks face the dual challenge of modernizing rapidly while adhering to evolving rules around data usage, transparency, and governance. Pierce-Gilmore noted that regulators themselves are still grappling with how to oversee emerging technologies, making infrastructure choices more consequential.
Compressed Timelines and the Urgency of Modernization
Banks are now operating under compressed timelines, recognizing that modernization is no longer a debate but a necessity. The focus has shifted to how to achieve this modernization without introducing new risks or accumulating further technical debt. “I do think there is a greater sense of urgency than ever,” Pierce-Gilmore remarked, emphasizing the immediate need for change.
Unlocking Data for Real-Time, Compliant Engagement
By unlocking data trapped within existing infrastructure, banks can transition from static processes to dynamic, real-time engagement. This enables immediate responses to customer actions, such as instant credit limit updates after a balance payment, relevant alerts, and personalized promotions. “You can do that in a much more seamless and relevant way if you’ve got the data at the time that it’s happening,” Pierce-Gilmore explained. Real-time event streaming, as opposed to batch processing, makes these seamless and auditable experiences possible.
Future-Proofing Through Modularity and Configurability
Infrastructure decisions made today must be adaptable to future technologies and regulations that are not yet defined. Pierce-Gilmore stressed that banks can no longer modernize with a fixed end state in mind, as the future uses of data and the evolution of technology remain uncertain. This uncertainty elevates the importance of modularity and configurability in systems, allowing them to adapt to expanding AI use cases and evolving regulatory clarity without creating the next generation of legacy systems.
Accelerating Time to Market for New Offerings
A significant challenge for many financial institutions is the extended time it takes to launch new products or customer experiences, often facing technology queues that span multiple years. Pierce-Gilmore described situations where issuers are eager to bring new products to market but are blocked by core system backlogs. Visa’s approach offers a solution by enabling banks to deploy capabilities on a standalone basis or layer them alongside existing systems, facilitating faster launches while deeper transformations proceed in parallel.
Pismo: A Cornerstone of Incremental Modernization
Pismo plays a central role in Visa’s strategy, providing real-time event streaming and flexible issuing capabilities that support incremental modernization. This allows banks to align infrastructure changes with immediate business priorities, whether it’s launching a new digital product, enhancing customer service, or enabling real-time interactions. Crucially, Pismo also ensures operational readiness, enabling banks to consume and act on real-time events across servicing, risk, and compliance functions.
Visa’s Modular, Ecosystem-Scale Approach
Visa’s infrastructure strategy is informed by its extensive global reach, serving tens of thousands of issuers. The company focuses on delivering modular components that can be combined to achieve measurable outcomes, rather than offering isolated features. “Our clients don’t want to buy features and functionality,” Pierce-Gilmore stated. “They want to buy outcomes.” This approach positions Visa as a force multiplier, leveraging cross-market and cross-regulatory insights to help banks modernize more efficiently and responsibly.
While legacy cores may continue to support current operations, the ability to unlock data, operate in real time, and adapt to AI and regulatory shifts will be the defining factors for banks seeking to compete effectively in the future. As Pierce-Gilmore confidently asserted, “I would put my whole life savings on the modernization of infrastructure.”
