RS2 Unveils AI-Powered Orchestration Layer to Modernize Bank Legacy Systems

Banking
30.04.2025 01:25 pm

Global payments orchestrator and technology provider, RS2, has unveiled an AI-powered orchestration layer that provides banks with a risk-free path to modernizing legacy systems—without disrupting daily operations. The announcement follows RS2’s latest whitepaper, How to Solve Banks’ Legacy System Challenges While Controlling Risk, which revealed that up to 70% of banks’ IT budgets maintain obsolete infrastructure—leaving little room for innovation.

With banks under pressure to compete with agile fintechs, meet rising customer expectations, and comply with regulatory mandates, RS2’s AI-powered solution offers a transformative approach to payment processing. The looming ISO 20022 deadline in November 2025 adds further urgency, forcing banks to modernize legacy systems or risk falling behind.

Rather than replacing core systems entirely – a process often fraught with risk and cost – RS2’s orchestration layer overlays existing platforms. This enables real-time optimization, dynamic transaction routing, and enhanced fraud protection, all without interrupting business continuity.

The AI-powered layer also intelligently manages transactions from end to end, bringing speed, agility, and precision to every payment. Through data-driven decision-making, the system automatically selects the most efficient and cost-effective route for each transaction—improving authorization rates, reducing failure points, and cutting processing costs.

The benefits extend well beyond cost efficiency, however. By applying advanced machine learning and predictive analytics, RS2’s technology gives banks deeper visibility into customer and merchant ecosystems. This enables hyper-personalized services, automated compliance processors like AML and KYC, and targeted engagement strategies that unlock new revenue streams.

The orchestration layer also tackles one of banking’s most persistent challenges: fraud prevention. Using real-time anomaly detection powered by machine learning, it enables proactive risk mitigation without manual oversight. Crucially, RS2’s self-hosted AI framework ensures that sensitive data remains under the bank’s control—supporting strict compliance and data privacy across global markets.

Commenting on the announcement, Radi El Haj, CEO of RS2, said: “Legacy systems are no longer just a technical challenge—they’ve become a strategic roadblock. Banks that continue prioritizing maintenance over innovation are falling behind. With our AI-enabled payment technology, institutions can intelligently modernize from the inside out—without risky, costly transformations.”

He added: “Our AI-enabled orchestration layer removes the trade-off between risk and innovation, allowing institutions to modernize at their own pace - maximizing operational efficiency, enhancing the customer experience, and maintaining full compliance and control.”