LATEST INTELLIGENCE
HOW FINANCIAL SERVICES ARE ACCELERATING CORE MODERNIZATION
For organizations in a variety of industries , digital transformation means modernizing core systems . It ’ s certainly true for financial services firms . A large majority of companies in the industry ( 80 %) have begun core modernization efforts , according to an online survey of 100 IT and business executives at US-based financial services firms conducted in September 2021 by IDG .
The number-one reason firms are modernizing core systems is that the cost of ongoing ownership is getting too high . Firms are prioritizing which core systems should be extended , renewed with modern independent software vendor solutions , or reinvented entirely to address emerging and ongoing digital transformation .
While it ’ s not surprising that many financial services firms are modernizing core systems , the timeframe in which they are accomplishing this is noteworthy . Organizations surveyed said they will modernize incrementally , with each incremental change to a given core system expected to take 18 months on average .
Drivers for modernization
Skyrocketing expense are one reason for this rapid time frame relative to core system efforts of the past . When asked to list the top five drivers for modernizing their core systems , survey respondents put the rising cost of ownership at number one . 80 % Other drivers for modernization include the fact that systems need to be integrated more quickly and securely with digital native financial services , and the emergence of business process changes that impact the core system that supports those business processes . p
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