Seventy five per cent of European banks are still using outdated core banking systems, affecting their ability to accelerate growth.

A new survey from Ovum, commissioned by Infosys, covered 65 C-level executives across European financial institutions and highlights that the lack of modern core banking systems is impacting banks' ability to meet changing customer demands quickly, and adapt to regulatory compliance mandates efficiently.

Eighty per cent of the banks said that outdated core banking systems were causing them to struggle to bring new products to market quickly. Three-quarters face difficulties getting access to timely data, and close to two-thirds feel that existing systems do not support regulatory change. Fifty five per cent focusing on increasing wallet share within the existing client base, with only 20 per cent trying to achieve growth through new customer acquisition; 79 per cent said that the complexity of IT, combined with insufficient expertise within the business, was a major barrier to core system replacement

Daniel Mayo, practice leader, financial services technology, Ovum, says: “There is a clear disconnect between market needs and market capabilities when it comes to core banking systems. Many banks are trying to restore revenue and drive growth through better servicing and cross-selling to their existing customer base. While European banks with modern packaged systems have faith that they are equipped to tackle the challenges in the coming years, those using older core banking systems do not.”

The full report can be downloaded at: http://www.infosys.com/finacle/resources/industry-reports/Pages/index.aspx

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