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Banks Add AI Agents, Keep Their 40-Year-Old Cores

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Banks Add AI Agents, Keep Their 40-Year-Old Cores

Many banks still run cores up to 40 years old, and full conversions can take years and cost millions. Sutherland and FlowX.AI will run 220-plus prebuilt agents on top of those systems instead.

FlowX.AI says one European lender cut manual credit handoffs by 80%, and another institution cut lending operating costs by 40%. It did not name either one.

Kastle CEO Rishi Choudhary calls agents an “action layer” over legacy cores. Banks widen agents’ access only as performance warrants. A collections agent, for example, can process a payment but cannot reverse it. Kastle raised $24 million in September to work on top of existing cores.

Banks keep their core systems because replacing them is costly and disruptive. Keeping them carries its own price. Employees work across fragmented applications, repeat manual steps and rely on expensive integrations.

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Fifty-two percent of financial institutions name legacy technology as an obstacle to real-time payments modernization, and 53% name manual-intensive internal processes, PYMNTS Intelligence found. Many banks and credit unions still run legacy core systems up to 40 years old, Federal Reserve Bank of Kansas City researchers wrote in a 2024 briefing. Full conversions can take several years and cost millions, they said.

Sutherland and FlowX.AI are betting banks don’t have to choose. Their new partnership puts AI agents to work on top of the cores banks already run.

AI supplies. AI, a platform for building, deploying and governing enterprise AI agents, offers more than 220 prebuilt agents.


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