Banks currently allocate 70% of their budgets maintaining outdated legacy systems, impeding digital transformation and straining IT resources. RS2's research highlights that the prevalent patch and upgrade method results in fragmented systems, diminishing customer service quality. Instead, they propose implementing AI-powered orchestration layers to seamlessly integrate existing platforms, thereby enhancing efficiency without high overhaul costs. Such modernization can optimize operations through intelligent transaction routing, ultimately solving long-standing legacy tech issues and better positioning banks for future competition in an evolving financial landscape.
Banks are inflexibly tied to outdated technology, with 70% of their budget consumed by legacy systems, impeding essential digital transformation and innovations.
The patch and upgrade method causes fragmentation in banking platforms, resulting in poor customer service and operational inefficiencies, highlighting the urgent need for modernization.
RS2 advocates for AI-based orchestration layers over expensive system overhauls, enabling banks to efficiently connect existing platforms and enhance operations without major costs.
As the digital landscape advances, banks must redirect funding from maintenance of legacy systems to innovative technologies that support their competitive edge.
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