Banks are migrating from central units to AI-driven cloud technologies.

Today, NTT DATA, a global giant in the IT services and digital business solutions sector, has launched an innovative report on the banking industry titled “The Digital Horizon: Banking Transition from Core Systems to AI-Empowered Cloud Infrastructure.” This analysis is based on a survey of 650 decision-makers in the global banking industry, including Spain, and highlights a crucial shift towards a more agile and customer-centric banking approach. The report also reveals a significant transformation trend: banks migrating from traditional systems to the implementation of advanced artificial intelligence and cloud computing technologies. This evolution is driven by the need to overcome various challenges, including growing customer expectations, the emergence of new market competitors, and the pressure of rapid technological advancement.

Modernization and Transformation Trends:
– Core systems resistance: Despite 89% of banking leaders identifying as innovators, 63% still operate on core systems, confirming the resilience of these systems.
– Cloud migration increases with generative AI injections: 63% of banking decision-makers confirm that generative AI is decisively facilitating the transition of banking applications to the cloud.
– Generative AI gains board-level support: A resounding 91% report that their AI and cloud initiatives are supported by their boards, indicating strategic prioritization.
– Capability gaps need to be addressed: With 80% lacking a strategic framework for adopting generative AI, the need to improve capabilities is evident.
– 45% of banks are already integrating generative AI into their technology stack, while 30% are in the early stages of analysis.
– Cloud as an innovation enabler: 36% of respondents cite flexibility and scalability as key factors for cloud migration, indicating a shift in concerns beyond costs.

25% of respondents also recognize a growing trend in cloud migration driven by AI advances. This foreshadows a new era where the collaboration between AI’s potential to reinterpret legacy code and the scalability of cloud technology is accelerating modernization and transformation initiatives, suggesting that the traditional persistence of core systems is approaching its end.

Kaz Nishihata, Director and Senior Executive Vice President of NTT DATA Group Corporation, commented, “Banks are not only evolving technologically, but also culturally. The rapid adoption of AI and cloud by the industry is redefining business models and setting new standards in sector leadership. This technological force is propelling banks towards a deeper understanding of customer needs, enabling the delivery of faster, secure, and uniquely personalized services.”

The research also found that the banking industry is rapidly harnessing the transformative power of generative AI, with 45% of banks already incorporating it into their operations. Furthermore, 30% are exploring its potential, signaling a proactive shift towards innovation. This adoption demonstrates the sector’s commitment to preparing for the future and the organizations’ desire to improve their competitive advantage in a rapidly evolving digital landscape.

Nishihata added, “The momentum of generative AI across the banking sector is a testimony to the industry’s determination to move beyond traditional core systems and leverage cloud environments to enhance security, improve resilience, innovate, and boldly redefine. This transition promises a new era for innovation.”

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