Financial institutions in Europe are stunting their own growth by relying on outdated IT, with a study from Infosys-Finacle finding that 75 per cent of banks are making it difficult to add new products and services because of antiquated core systems.
While these core systems are essential for recording and managing transactions, 80 per cent of those questioned claim that legacy tech is making it difficult to introduce new products. 55 per cent of banks plan to develop their existing client bases, compared to the 20 per cent focused on customer acquisition, but a lack of visibility of processes and an inability to innovate are making it difficult to create services which ‘wow’ customers.
“Core banking systems are at the heart of any bank’s activity, and adoption of modern systems should be reflected in the bank’s strategy to stay competitive,” says Finicle global head Haragopal Manglpudl.
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