Banks pivot to AI cloud tech to meet changing expectations, NTT Data report says
NTT Data, a digital business and IT services provider released a global banking research report titled “The Digital Horizon: Banking’s Shift from Mainframe to AI-Driven Cloud Infrastructure“.
The report highlights findings from a survey of 650 global banking decision-makers, revealing an industry shift towards agile and customer-centric banking.
The report notes that banks are embracing AI and cloud technologies and shifting away from traditional mainframe systems. This shift is driven by consumer demands, market disruption and the need to stay competitive in the face of tech advancements.
Kaz Nishihata, the director and senior executive vice president at NTT Data Group Corporation, states that banks are undergoing technological and cultural transformations.
“The industry’s rapid adoption of AI and cloud is redefining business models and establishing a new norm in sector leadership,” says Nishihata. “This technological tide is propelling banks toward a more intimate understanding of customer needs, delivering faster, more secure, and uniquely tailored services.”
Despite the majority of banking leaders identifying as innovators, a significant number, 63%, still operate on mainframe systems, highlighting the resilience of this technology. That said, the report notes that generative AI plays a crucial role in facilitating the transition of banking applications to the cloud, with 63% of decision-makers confirming its impact.
Moreover, according to the report, 91% of organizations report solid strategic support from their board for AI and cloud initiatives. However, upskilling is needed, as 80% of respondents need a framework for generative AI adoption.
That said, 45% of banks have already integrated generative AI technology, while 30% are exploring its potential. Cloud migration is driven by flexibility and scalability, with 36% of banking institutions embracing it for innovation.
NTT Data’s research highlights how generative AI is driving the transition of banking applications to the cloud.
AI advancements fuel the trend of cloud migration, ushering in a new era of collaboration between AI and cloud technology. This partnership is speeding up modernization and transformation efforts, potentially signaling the eventual dominance of the mainframe era.
NTT Data says the banking industry is embracing generative AI, with 45% of banks already incorporating it into their operations. Another 30% are exploring its potential, showing a proactive shift towards innovation.
Nishihata adds, “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.”
The demographics of the NTT Data’s survey respondents include leaders from the United States, the United Kingdom, Japan, Germany, Spain, Mexico and Brazil. The institutional scope covers multinational banks as well as local banking institutions. The expertise range encompasses perspectives from various areas, including IT, Operations, Innovation and Strategy.
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Article Topics
AI | cloud | finance | generative AI | NTT
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