The cost of legacy risk systems in banking: CRO perspectives

Banks often find themselves dependent on legacy solutions that were implemented years, if not decades ago. These solutions, while reliable in the past, can become a significant liability as newer, more sophisticated technologies emerge.
CRO perspectives on legacy risk systems

The financial industry has experienced rapid technological advancements, and sticking with outdated solutions can put banks at a disadvantage in several critical areas.

Banks recognise that robust internal tech expertise is key for developing and implementing innovative solutions, enhancing operational efficiency, and safeguarding sensitive financial data. With the right investment, banks can stay agile and competitive in an era defined by rapid technological advancement and changing business demands. A recent study by Quantifi highlights the concerns CROs and Heads of Risk Systems, at tier-2 banks, have about their internal technology expertise.

The survey revealed three standout concerns that affected all global regions: reliance on outdated technology, ineffective use and aggregation of data, and the inability to identify specific technologies to help their banks achieve strategic goals. Outdated technology remains a significant hurdle, impeding efficiency and innovation across the board. Firms are grappling with solutions that can no longer keep pace with the fast-evolving technological landscape, leading to operational inefficiencies and increased vulnerability to cyber threats.

The challenge of not effectively using and aggregating data is another critical issue. In an era where data-driven decision-making is paramount, many firms are struggling to harness the full potential of their data. This inefficiency not only hinders their ability to make informed strategic decisions but also affects customer satisfaction and competitive positioning.

Additionally, the inability to identify specific technologies that could drive strategic goals poses a considerable obstacle. Firms are finding it difficult to pinpoint the technologies that align with their long-term objectives, causing a disconnect between their technological investments and strategic outcomes.

Contents

  • Top Concerns about internal tech
  • Legacy solutions: a hidden threat
  • Data inefficiencies: missed opportunities and risks
  • Aligning tech investment with strategic goals
  • Technology built for the way you work

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