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Do Banks Need AI Employees More Than They Do Core Upgrades?

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Do Banks Need AI Employees More Than They Do Core Upgrades?

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Rishi Choudhary, Co-Founder and CEO of Kastle, believes that banks have been approaching AI modernization from the wrong end of the technology stack: the legacy end.

For years, he said, the industry’s transformation agenda has been dominated by the dilemma of just how banks can introduce new capabilities without dismantling the expensive and complicated legacy systems that keep their businesses running.

But Kastle, an AI workforce platform for banks and lenders, has a different proposition for the financial services space. Fresh off of a $24 million Series A raise this month, Choudhary said that a different model is emerging. Leave the infrastructure in place, introduce AI agents capable of operating across it, and gradually transfer increasingly complex work from human employees to digital ones.

“We think of the agents as the action layer on top of [legacy cores],” Choudhary tole Karen Webster in the latest Monday Conversation.

Choudhary does not envision AI agents immediately displacing core banking platforms. Existing foundational systems would continue maintaining institutional data and underlying business logic, while agents increasingly execute the work surrounding them.

That, ultimately, makes agents more akin to a coworker than a piece of technology infrastructure or an application. An agent receives an assignment such as a customer call, case file or compliance alert, then executes the authorized work and updates the bank’s systems. Agents, of course, must also come complete with defined responsibilities, restricted permissions, performance reviews and opportunities for advancement.


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