The financial sector’s IT decision-makers report using legacy systems in 63% of cases. That’s the finding of a study conducted among 650 IT decision makers in the financial industry by NTT DATA, a world leader in technology services. This runs counter to the statement made by nine out of ten people (89%) that they are actively engaged in innovation, since legacy systems may impede this process.
There does seem to be a move toward the cloud, despite the use of antiquated equipment. AI and other emerging technologies are making this simpler. Indeed, almost two thirds of IT decision makers (63%) believe that cloud migration is becoming simpler with the help of Gen AI. Not only IT executives are thrilled about the marriage of AI and cloud computing. In fact, 91% of IT decision makers say that the board of directors supports efforts including these technologies.
Benefits of Cloud Computing
It follows that financial institutions can no longer ignore the benefits of cloud computing. Three out of every five IT decision makers (36%) think that scalability and flexibility are important considerations when deciding whether to go to the cloud. Furthermore, 25% of them anticipate an upsurge in cloud migration as a result of AI developments. One of the main issues facing financial organizations is the process of reinterpreting old code, which may be partly explained by AI’s capacity to make it easier. It should come as no surprise that banks are using AI more and more.
Banks Lag Behind
Even with all of the excitement around AI and its numerous advantages, not all financial institutions have fully embraced the technology yet. While thirty percent of banks are still in the early phases of deployment, the majority of institutions have already incorporated AI. Furthermore, eighty percent lack a strategic plan for implementing Gen AI. This would emphasize how important it is to set aside time and space to use AI.
“The financial sector is facing a growing demand for effective data management. Meanwhile, in doing so, they must also comply with data privacy rules,” said Saraswat Sarkar, Director Executive Team, Banking & Financial Services at NTT DATA Netherlands. “Banks are struggling with the fact that they are still using traditional systems, making the transition to the cloud difficult. Modern technologies like GenAI make this transition easier. It is an ideal way for banks to distinguish themselves and serve customers in an optimal way.”
Top IT executives employed by banks with annual revenue over $10 billion participated in the poll. NTT Data survey participants came from eight different nations, totaling 650 IT decision makers in the financial industry. United States, United Kingdom, Mexico, Brazil, Germany, Italy, Japan, and Spain were among them.
