TECH & AI
Banks have an innovation problem. Facing increased pressure to transform, financial leaders are hindered by restrictive and immovable legacy core banking systems, deeprooted cultural risk aversion, and complex and lengthy procurement processes.
The result of these multiple challenges is very real. According to a recent report from data-driven core banking engine SaaScada, 80 % of UK banking leaders say that barriers to innovation have impacted their business on a wide front, including talent attraction and retention, competitive edge and loss of wallet share.
SaaScada’ s research, covering 150 UK banking innovation leaders, sets out the extent of the problem. It finds that, despite a desire to innovate and keep pace with the industry – more than two-thirds of those surveyed say pressure to transform and launch new products has increased over the last year – banks are stuck between a rock and a hard place, particularly when it comes to core banking migration and new product testing.
“ Core banking replacement is akin to open heart surgery while the patient is walking around”
NELSON WOOTTON CEO AND CO-FOUNDER SAASCADA fintechmagazine. com 81