Banking – The Legacy Issue and The Threat of Extinction

With the fundamental shift towards mobile technology and customer expectation for real-time transactions and access to financial services 24/7, that is the question being asked by many IT experts. In addition to customer expectation, there is also an increased risk of outages: “For the next five years – and we’re talking globally – every incumbent banking player who’s been around for a while will have an increased risk of outages,” says Julian Skan, managing director of financial services at consultancy Accenture.

“When a bank reaches a certain size it becomes too risky to change the core technology, so you build layers on top, and that adds complexity.”

Is old tech putting banks under threat of extinction?