Half of banks 'struggling due to legacy IT'

Barely half (51 per cent) of banks are able to keep up with the speed of their business due to legacy software, according to new figures.

A survey conducted by Boomi, a Dell Technologies business, amongst 825 enterprise architects based in the EMEA region, also found that 65 per cent of banking IT budgets are being set aside for modernisation and innovation.

The survey focussed on use of Enterprise Resource Planning (ERP) software among financial institutions, with the research suggesting that deploying ERP software could cut the cost of “keeping the lights” on for business budgets from 70 per cent to 36 per cent.

It found that banks could expect to see 63 per cent more growth following the rollout of ERP software, the highest of any sector surveyed, followed by improved business efficiency (59 per cent) and gains in performance assurance (54 per cent).

The research also revealed that the majority - 68 per cent - of EMEA organisations are focused heavily on moving enterprise applications to the cloud and are specifically focused on modernising legacy ERP applications to enable strategic growth - 53 per cent - rather than remain a cost centre.

For EMEA organisations across the board, 58 per cent said upgrading their IT via ERP could offer more uptime for their systems, followed by performance and security (58 per cent), driving business growth (58 per cent), driving business growth (55 per cent) and improved IT agility (52 per cent).

When asked how they intend to meet the goal of more modernised IT infrastructure, respondents cited focusing on standardising and consolidating applications (76 per cent), migrating infrastructure to the cloud ( 79 per cent), and consolidating legacy infrastructure (69 per cent).

The main challenge faced by EMEA organisations was a lack of integration technologies which can ingest data from any device/data source (cited by 51 per cent), followed by the lack of the right integration skills amongst staff (39 per cent).

Derek Thompson, vice president of EMEA at Boomi, said: “EMEA businesses are recognising the opportunity that cloud-based applications provide them in shifting their investments to more strategic growth initiatives, be those applications ERP, CRM or iPaaS."

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