Banks move towards cloud and AI, according to NTT DATA report

Banks have been gradually moving towards a more agile, customer-centric model, adopting cloud technologies

Banks have been gradually moving towards a more agile, customer-centric model, adopting cloud-based technologies powered by artificial intelligence (AI). This emerges from the findings of the report ‘The Digital Horizon: Banking’s Shift from Mainframe to AI-Driven Cloud Infrastructure’, presented by NTT DATA, a digital business and IT services firm.

The research, which surveyed 650 leaders of financial institutions worldwide, reveals a growing collaboration with artificial intelligence and cloud services. While legacy systems based on legacy infrastructure still persist, the report highlights that 63 % of banks still operate on legacy systems, despite 89 % identifying themselves as innovators.

However, more than 60 % of respondents say that generative AI is facilitating the transition of applications to the cloud, marking a significant shift in adoption of these technologies.

The report also highlights that board support is high, with nine out of ten executives reporting that their AI and cloud initiatives are backed by their respective boards. While most banks are already integrating AI into their technologies, 30% are still in the early stages of adoption. In addition, it is highlighted that 80 percent% lack a strategic framework for the adoption of generative AI.

As for the cloud, 36 % of respondents cite flexibility and scalability as key factors for migration, indicating a shift in concerns beyond costs. On the other hand, 25 % recognise a growing trend in migration to the cloud driven by advances in AI.

José Manuel Pérez Bajo, Banking Partner at NTT DATA, commented: “Driving change, while a great challenge, is also an opportunity for banking transformation. Understanding the current landscape, the options available and recognising the barriers makes it easier to modernise technology with greater clarity and fewer risks.”

Kaz Nishihata, Director and Senior Executive Vice President of NTT DATA Group Corporation, noted that “this technological force is driving banks towards a deeper understanding of customer needs, enabling them to deliver faster, safer and more personalized services.”

K. Tovar

Source: Yahoo Finanzas

(Reference image: Hitesh Choudhary, Unsplash)

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