Endava, a technology services company known for its engineering and industry expertise, has released its Retail Banking Report, which reveals a significant insight: three-quarters of banks acknowledge the urgent need to modernize their core systems.Â
Despite 75% of financial institutions (FIs) believing they offer superior user experiences and technology compared to competitors, many are struggling to fully capitalize on new payment offerings and enhance cybersecurity due to outdated core systems.
Strategic Priorities and Technological Investments
The report highlights that while a majority of FIs have migrated their core systems to the cloud, they face substantial challenges in implementing, scaling, or managing these systems effectively. Key issues include:
- competing technical priorities
- a shortage of technical resources
- fears of lengthy implementation times
- concerns over fraud and security
Financial institutions are prioritizing efficiency (85%), customer retention (83%), and the enhancement of digital customer experiences (85%) as their top goals for the coming year. To achieve these, many are turning to advanced technologies like AI and data analytics, which are viewed as critical for improving internal processes and enhancing customer-facing products. AI and data analytics are particularly valued for their capabilities in real-time fraud detection and security.
Fred Fuller, Global Head of Banking at Endava, comments on the journey towards modern banking:
FIs have come a long way in embracing the fact that modern banking and a cloud-based core go hand-in-hand. Banks also recognize that migrating a legacy monolithic core to the cloud is not modernization. They need to leverage modern digital technology to truly modernize the core to create a flexible and dynamic infrastructure that can quickly respond to customer and market demands.
Fred Fuller
