Why Composable Banking Is the Future of Financial Infrastructure

In Episode 37 of The Exponential Show, host Mayank Singh sat down with Eric Euwes, Chief Commercial Officer, and Jirat Boomuang, Head of Solution Engineering, Asia at Akkuro, during Money20/20 Asia in Bangkok.

The conversation explored how banking technology is evolving, why composable banking architectures are gaining attention, and how financial institutions can modernize without being locked into rigid legacy systems.

Eric and Jirat also shared their perspectives on AI in banking, the opportunities across Southeast Asia, and what better banking infrastructure ultimately means for both financial institutions and end customers.

From traditional banking systems to modular architecture

Eric’s career has spanned more than four decades across technology, financial services, and commercial leadership. Having worked extensively in Europe before helping Akkuro expand into Southeast Asia, he has seen first-hand how banking systems have evolved and where they often fall short.

Traditional core banking implementations are typically large, slow, and difficult to replace. A bank may spend years implementing a system, enjoy a few years of stability, and then eventually face another long replacement cycle when the technology becomes outdated.

Composable banking is designed to solve that problem.

Instead of one large, monolithic system, a composable architecture breaks banking infrastructure into modular components. A bank can use one solution for lending, another for investments, another for CRM, and another for current accounts, all connected through an orchestration layer.

This gives banks more flexibility. They can modernize one part of the system at a time, test new products faster, and avoid the risk of a complete “rip and replace” transformation.

Why speed matters in modern banking

One of the most striking examples from the conversation was the difference between traditional implementation timelines and composable banking timelines.

In a traditional setup, launching a new product such as SME lending could take years if it needs to be integrated into a legacy core system. With Akkuro’s composable approach, Eric explained that a bank could go live with a new SME lending proposition in around 100 days.

That change matters because banks are no longer competing only with other banks. They are also competing with fintechs, digital lenders, non-bank financial service providers, and platforms that move much faster.

Composable banking gives banks a way to respond to customer needs more quickly while still maintaining the reliability and regulatory discipline expected of financial institutions.

As Eric put it, a customer is not really looking for a mortgage. They are looking for a house. The financial product is the instrument that helps them get there.

The role of AI in banking transformation

Jirat’s background brings together computer science, finance, and AI, making him particularly well placed to discuss how artificial intelligence is entering banking systems.

Both Eric and Jirat were clear that AI has huge potential, but financial institutions need to understand its limitations.

At present, many AI use cases in banking are focused on areas such as call centers, fraud detection, pattern analysis, and document processing. The technology is useful, but it is not yet at the stage where banks can blindly allow AI to make critical lending or disbursement decisions without human oversight.

One of the challenges Jirat highlighted is that AI is still non-deterministic. The same question can produce similar but not identical answers. In banking, where reliability, auditability, and explainability are essential, that creates a real implementation challenge.

This is why both guests emphasized the need for “human in the loop” systems. AI should act as a co-pilot, not an unchecked decision-maker.

What better banking infrastructure means for customers

A recurring theme in the conversation was the human impact of financial technology.

Akkuro’s broader purpose is built around “technology for a financial lifetime.” The goal is not just to sell software to banks, but to help people access the financial products they need across different stages of life.

Better banking infrastructure can help people buy homes, help entrepreneurs access loans faster, and help individuals manage savings or prepare for retirement.

This becomes especially important in Southeast Asia, where many people and businesses remain underserved. In markets such as Indonesia, the Philippines, Vietnam, and Thailand, there are still large populations that may not have easy access to full financial services.

Composable technology, combined with AI and digital channels, can help banks and financial institutions serve these customers more effectively.

Benefits for banks: speed, compliance, and control

For banks, the benefits go beyond innovation.

Eric explained that Akkuro’s technology has roots in Europe, where labor costs are high and regulation is strict. This shaped a strong focus on straight-through processing, which means digitizing processes end to end with as little manual intervention as possible.

For banks, this can reduce errors, improve compliance, speed up approvals, and make reporting to regulators easier.

In lending, for example, instead of waiting weeks for a loan decision, a customer or business owner could receive clarity within hours. For entrepreneurs, that speed can make a meaningful difference.

Jirat added that technology also helps leadership teams manage risk. Founders, CEOs, and bank executives cannot rely only on people. They need trusted processes and trusted technology, especially in highly regulated industries.

Southeast Asia as a growth opportunity

Akkuro sees Southeast Asia as a major opportunity because of the region’s young population, fast-growing economies, and strong appetite for digital financial services.

While Europe is a mature and highly regulated market, Southeast Asia brings a different kind of energy. The region has ambition, speed, and large underserved populations.

Thailand, in particular, offers strong potential. Akkuro is already building its presence in Bangkok, with plans to grow its local team and support banks in the region more closely.

Eric emphasized that succeeding in Southeast Asia requires local knowledge. It is not enough to bring European technology into the region. Akkuro needs people on the ground who understand local culture, regulation, banking needs, and customer behavior.

Real-world success stories

Akkuro’s solutions are already used by major financial institutions in Europe.

Eric shared the example of ING, where Akkuro supported the standardization of an investment platform across multiple countries. Instead of maintaining different systems in each country, the bank could move toward one more scalable and controllable platform.

Another major example is in mortgages. In the Netherlands, a significant share of mortgage transactions is processed through Akkuro’s software, demonstrating the scalability and stability of the technology in a high-volume, highly regulated market.

The team also shared an SME lending example from Switzerland, where AI-powered document processing helps convert submitted documents into structured data. This makes the loan assessment process faster and can reduce the waiting time for applicants from weeks to hours.

What’s next for Akkuro

Akkuro is now focused on growing its presence in Southeast Asia. The company already has an office in Ho Chi Minh City, is establishing itself in Bangkok, and plans to expand further in the region.

Beyond business growth, Akkuro is also investing in talent development. The team has relocated senior engineers from Europe, hired and trained local engineers, and is actively transferring knowledge into the region.

For Eric and Jirat, the long-term goal is not just to sell technology, but to contribute to the development of the financial technology ecosystem in Southeast Asia.

This episode was recorded during Money20/20 Asia in Bangkok. A special thank you to Money20/20 Asia for having Exponential as one of the media representatives, and to Midas PR for making this conversation happen and supporting the production behind the scenes.