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Are your IT systems working against you? BFS firms must address creaking IT as it comes under the spotlight.
Despite the ongoing emergence of new nimble disruptors, incumbents in the banking and financial services (BFS) industry have remained unphased, continuing to operate on the same legacy systems, reassured by major barriers to entry in the market. However, defending against these disruptors is only half the battle as the spotlight from governments and corporate clients is putting more pressure on banks to sort creaking IT. We can see a recent example in the UK, where parliament highlighted the poor state of IT in the sector. The Treasury Committee published a unanimously agreed report on IT failures in BFS, in which they agreed the current rate of failures was “unacceptable.” The window for traditional BFS firms to evolve is closing as regulators and customers alike recognize the industry’s pitfalls; if these legacy BFS enterprises don’t act swiftly, their creaking IT systems will combine with digital disruptors in a lethal pincer movement.
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