Why legacy issuing infrastructure is holding issuers back

Speed, personalisation, and seamless integration were once clear differentiators in the issuing world. Today, they are simply expected by both customers and partners. Despite this shift, many issuers continue to rely on technology foundations designed for a very different operating environment. Alex Kelly, Tribe Payments' Head of Product Management, explains why modular technology is the key to overcoming legacy infrastructure. 

Legacy systems that once delivered stability are increasingly constraining innovation, expansion, and competitiveness. One report suggests that 75% of banks say they struggle to implement new digital payment solutions because of their legacy infrastructure. What was built to support scale and control now often slows progress.

These pressures have intensified as issuing has become more complex. Card programmes are more specialised, regulatory requirements more fragmented, and partner expectations higher. Modern issuers are managing interconnected ecosystems that include wallets, loyalty platforms, KYC providers, risk engines, scheme mandates, and regional compliance layers, all of which must work together reliably and in real time.

The consequences are tangible. Some issuers still require months to launch a regional card programme because of BIN constraints or tightly coupled integrations. Introducing capabilities such as instant virtual cards or loyalty point redemption often triggers lengthy development cycles and added operational risk. Changes that should be handled through configuration frequently become complex, time-consuming projects.

Why modularity is now essential

Inflexible systems and hard-coded logic limit issuers in ways that are increasingly difficult to justify. Even routine changes, such as adding a spending control or enabling a regional BIN configuration, can require extensive testing and redevelopment. As a result, innovation slows, partners become frustrated, and opportunities are lost.

Digital-first issuers demonstrate a different approach. They are not succeeding because they invest more heavily, but because their platforms allow them to adapt quickly. They can respond to partner requests, implement regulatory updates, and expand into new regions without introducing unnecessary complexity.

This is why configurable, modular infrastructure has become a foundational requirement. Modularity allows issuers to adjust individual components without disrupting the wider system. Regional requirements can be addressed through configuration rather than custom development, and integrations can be added or replaced without rewriting core issuing logic.

Leading issuers are already seeing the benefits. Some now deploy localised BINs in weeks rather than months, onboard partners without touching the core platform, and launch new products with significantly less friction.

The cost of inaction

A modern issuing platform should simplify complexity. It should enable issuers to launch programmes without waiting for engineering capacity, customise BINs without destabilising existing products, and connect to partners efficiently.

Issuers that remain reliant on legacy platforms face increasing risk. Slower launches, constrained integrations, and higher operational and regulatory exposure all take their toll. Customers, partners, and regulators all notice when systems fail to keep pace.

The broader market shift reinforces this urgency. Juniper Research has reported that digital/payment cards issued via modern platforms are expected to hit 1.3 billion annually by 2027, up from 500 million in 2023. Issuers unable to modernise risk being structurally excluded from a rapidly growing segment of the market.

Supporting the next generation of issuers

As issuing ecosystems grow more complex, infrastructure needs to simplify rather than constrain progress. Modular, API-first platforms give issuers the flexibility to adapt, integrate, and scale without introducing unnecessary risk.

Tribe helps issuers modernise their issuing stack with configurable card and BIN management, seamless integrations, and real-time capabilities designed for today’s market.

Get in touch today to find out more.