Why the Best-Performing Banks Are the First to Modernize | Jody Bhagat, President NA, Engine by Starling

What does it actually take to modernize a bank — and why are the best-performing institutions the ones moving fastest? Jody Bhagat, President of North America at Engine by Starling, joins The Outlier Podcast to answer that and much more.About This EpisodeThe banking industry is at a genuine tipping point. Neobanks like Chime are capturing over 40% of new checking account openings nationally — outpacing JPMorgan Chase despite having zero physical branches. Super-regional and national banks are encroaching on tier two and tier three markets. Legacy core systems are consuming up to 80% of IT budgets while providing zero competitive differentiation. And a transformative wave of banking M&A is approaching that will permanently separate leaders from laggards.In this episode, host Anurag Mukherjee and guest Jody Bhagat go deep on what banks must do — strategically, technologically, and operationally — to come out ahead.About Jody BhagatJody Bhagat is President of North America at Engine by Starling. He is a former McKinsey & Company Partner, spent 7+ years as Global Banking Head at Personetics, and held senior operating roles at Citizens Bank (where he led a 1,000-person digital and call center division), Wells Fargo, and US Bank. He brings a rare combination of operator, strategist, and fintech leader experience to every conversation.What You Will Learn— The real difference between a core upgrade and a bank modernization program, and why it determines how you scope, fund, and lead the initiative— Why Chime captured ~13% of new US checking account openings in Q3 versus Chase at ~9%, and what that signals for the industry— How Engine by Starling has deployed full technology stacks — core, digital front end, CRM, AML, FinCrimes, and workflows — in under 12 months— Why Starling Bank operates at approximately $70 OPEX per customer versus ~$400 for a typical US regional bank, and how much of that gap is capturable— How a bank with 500,000 customers saving $50 per customer unlocks $25 million to reinvest into growth and differentiation— Why Tangerine Bank — a 2.2-million-customer subsidiary of Scotiabank and 14-time JD Power award winner — selected Engine for a landmark 10-year modernization partnership— What "hollowing out the core" means in practice and why it works as a phased modernization strategy— Why AI readiness in banking is not about use cases — it is about having a unified data model and a modern platform that lets you deploy and scale models rapidlyKey Data Points— Chime: ~13% of new US checking accounts in Q3— Neobanks: 40%+ of all new checking account openings nationally— Legacy core maintenance: up to 80% of bank IT budgets— Banks citing core transformation as top priority: 67%+ (McKinsey)— Starling Bank OPEX per customer: ~$70— US regional bank OPEX per customer: ~$400— Engine full-stack deployments: completed inside 12 months— Tangerine Bank customers: 2.2 millionWho Should ListenThis episode is essential for bank executives, chief digital officers, CIOs, heads of retail banking, compliance leaders, fintech founders, and anyone working inside or alongside financial institutions navigating transformation.ConnectEngine by Starling: enginebystarling.comStarling Bank: starlingbank.comTangerine Bank: tangerine.caThe Outlier Podcast covers banking, fintech, data, and transformation — featuring the leaders shaping the future of financial services.