How Legacy IT Slows Down Digital Transformation
The wider business implications of legacy IT on retail banks is significant.
Inability to gather real time customer data Legacy systems lock data in silos, hampering the understanding of customers’ needs and the ability to respond quickly. It’s one reason only 6% of banks believe they’re able to provide highly personalised outreach. 9 Constrained collaboration with dispersed teams Restricted communication limits the ability to innovate and get to market quickly to prevent more agile entrants from getting established. The infrequent release of new products is attributed to legacy IT systems by 43% of global banking executives. 10
Hampered integration of digital technology Poor integration of new technologies such as AI or ML limits the ability to generate new revenue streams, deliver new products and engage with customers in new ways. Poor digital experiences for customers Legacy IT delivers disjointed digital experiences with geographic limits, resulting in dissatisfied users, especially as omnichannel service and seamless experiences across communication methods are expected by 9 in 10 consumers. 11
9. “Innovation in Retail Banking,” Efma and Infosys Finacle, October 2018. 10. Capgemini Financial Services Analysis, 2020 COVID-19 Customer Survey. 11. “CX Transformation Benchmark,” NICE inContact, 2018.
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