In today’s fast-changing banking landscape, a technological gap has opened up between newer fintechs and incumbent banks. While fintech platforms are built using advanced, automated systems that require minimal manual intervention, retail banks still rely on outdated processes. The Financial Times recently reported that 43% of banks still rely on core technologies like COBOL – a programming language from 1959.
The Bank of England has expressed frustration over traditional banks’ reliance on legacy systems. It said: “Many firms’ legacy systems have inherently inconsistent source data that has not been touched since the data was captured at the time of the transaction. This means that the full set of data we ask for isn’t always available.”
Why should banks automate?
Banks that continue to use outdated legacy systems to conduct reconciliations will lack the data quality, visibility, and transparency required by modern regulators.
And, with 40% of consumers now using a fintech platform for their day-to-day banking, traditional banks need to automate to stay competitive. This includes pushing for greater levels of automation in the end-to-end reconciliation life cycle.
Traditional banks have an advantage over challengers, having built up experience and consumer trust over decades. To help make the most of this position, we’ve put together a report on how automating key back-office processes can minimise risk and allow banks to meet customer demands.
Read it now to discover:
- The risks of legacy systems in banking
- How automation cuts cost and reduces manual errors while helping firms achieve operational efficiency and meet regulatory requirements
- The consequences of poor data quality and control
- The relationship between financial data management and regulatory reporting
- What reconciliation solution will deliver the most business value for banks
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