45% of banks are already utilising generative AI technology in their systems, while 30% are in the early stages of integrating it. NTT Data revealed the stake of global banks on their digital transformation journey.
The global banking sector is rapidly evolving and embracing generative AI technologies to enhance its Go-to-market strategies. They are finding innovative ways to gain a competitive edge by integrating robust technologies into their existing tech stack. Adding to this tussle of staying ahead of the competition, they are shifting from Mainframe to AI-driven cloud environments.
According to a survey by NTT Data, 63% of banking decision-makers leverage the capabilities of generative AI to migrate their banking applications to the cloud. Here are a few key takeaways from the survey.
Where do global banks stand in their digital transformation journey?
The researchers of NTT data surveyed 650 global banking decision-makers to understand their stance on emerging banking technologies. Here are some insights from their response:
- 63% of the banking innovators still operate on mainframe systems, confirming the mainframe’s resilience as their preference
- 91% of them reported that their AI and cloud initiatives are endorsed by the board, signalling strategic prioritisation
- 80% of them lack a strategic framework to completely integrate GenAI capabilities into their existing tech stack
- 45% of banks are already utilising generative AI technology in their systems, while 30% are in the early stages of integrating it.
How are upsurging AI-powered cloud migration trends overcoming scalability challenges?
Flexibility and scalability are key drivers for cloud migration that go beyond cost concerns. This has been a transformative stage where mainframe’s resilience aligns with the agility of AI-enabled cloud computing. Adding to this convenience, 25% of the decision-makers in the banking sector strongly believe that AI-propelled cloud migration technologies will fade the dominance of the mainframe. Credit goes to the emerging era where AI’s potential to reinterpret legacy codes and cloud technology’s scalability will speed up the banks’ transformative journey.
In support of this innovative modernisation, Kaz Nishihata, Director and Senior Executive Vice President at NTT DATA Group Corporation, expressed, “Banks are not only evolving technologically but also culturally.The industry’s rapid adoption of AI and cloud is redefining business models and establishing a new norm in sector leadership. This technological tide is propelling banks toward a more intimate understanding of customer needs, delivering services that are faster, more secure, and uniquely tailored.”
“The momentum for generative AI across the banking sector is a testament to the industry’s resolve to move beyond traditional mainframes, leveraging cloud environments to fortify security, enhance robustness, innovate, and boldly redefine. This transition promises a new era of innovation,” Nishihata further added.
Summing it up, In this fast-evolving digital banking landscape, the sector is committed to future-proof its services to stay ahead in the race of early technology adopters. 45% of the banks are already utilising generative AI in their system, and 30% of them are still exploring its potential. All in all, the future of global banks exists in a world with less dependencies on mainframe and more inclination towards an AI-driven cloud environment. Consequently, it enables them to lap up the benefits of scalability, security and modernisation, all in one place.