How Legacy IT Slows Down Digital Transformation Continued
The wider business implications of legacy IT on retail banks is significant.
Restricted gathering of compliance information Legacy IT has only limited ability to gather the reliable communications and data that regulators demand. That increases the risk of fines, breaches and reputational damage. Over 42% of global bankers say legacy banking systems create regulatory risk. 12 Overloaded networks Inflexible legacy IT limits your ability to quickly scale up and down, creating overloads that reduce access to tools and business systems, affect connectivity with customers and ecosystem partners, and impacts on your market responsiveness.
Limited secure customer data exchange The less-than-secure data exchange typical of legacy IT creates risks for reputational damage, business disruption, data breach and ransom costs. Inefficient, environmentally unfriendly data centres Legacy IT systems have an unnecessarily big carbon footprint that can handicap your efforts to meet society’s growing demands for more sustainable practices. Excessive costs Running legacy IT reduces budgetary headroom for digital transformation and adds unnecessary cost across the business. Nearly 88% of financial services CIOs have had a digital project fail or been reduced in scope due to the costs of updating legacy IT. 13
12. Capgemini Financial Services Analysis, 2020 COVID-19 Customer Survey. 13. “CIO Survey,” Couchbase, 2018.
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