Cloud Banking Gives Legacy Systems A Lift

Is it surprising to know that 55 percent of legacy financial institutions (FIs) report lacking maturity in core systems? Or that, on average, 15 percent of an FI's annual operating costs go toward maintaining core banking systems that are outmoded? "Migrating to cloud- and AI-based solutions could help FIs handle growing calls for faster banking tools during the COVID-19 pandemic, and recent trends show they are beginning to do so," according to PYMNTS' June 2020 Digital Banks And The Power Of The Cloud Tracker done in collaboration with NuoDB. "Banks are spending approximately 15 percent of their yearly operating budgets on technology upgrades, according to one study, and there has been an increase in partnerships between third-party cloud technology providers and global FIs eager to enhance their online platforms. Many of these legacy banks are also planning to integrate AI [artificial intelligence] tools, but their reliance on outdated infrastructure could be hindering their cloud migration plans. These FIs will have to overcome such frictions to keep pace with competitors," the new Tracker states.