NTT Data announces the results of new research on the banking sector, which has long been interested in the evolution from mainframe systems to cloud infrastructures.
Lo studio “The Digital Horizon: How Banking is Moving from Mainframes to AI-Driven Cloud Infrastructure” reveals the results of a survey of 650 global decision makers in the banking universe.
The survey also reveals a transformative trend: Banks are finally moving away from legacy mainframe systems to AI and cloud technologies, driven by multiple challenges they face, including consumer demands, rapid market changes and the competitive pressures of innovative technological advances .
Modernization and transformation trends
• Mainframes resist: Although 89% of banking leaders identify as innovators, 63% still operate mainframe systems, confirming their resilience.
• Migration to the cloud will be accelerated by generative AI: 63% of banking decision makers confirm that generative AI is significantly facilitating the transition of banking applications to the cloud
• Generative AI is a top priority: As many as 91% of companies say their AI and cloud initiatives are supported by their board of directors, indicating a strategic priority.
• Overcome skills gaps: 80% do not have a strategy for adopting generative AI, revealing the need for upskilling.
• 45% of banks are already integrating generative AI into their technology stacks, while another 30% are in the early stages of study.
• The cloud as an innovation factor: 36% of respondents cite flexibility and scalability as key drivers for cloud migration, indicating a shift beyond cost concerns.
The endurance of mainframes in banking is coming to an end, thanks to the integration of generative AI into cloud migration strategies. According to data from NTT Data 63% of banking decision-makers confirm that generative AI is significantly facilitating the transition of banking applications to the cloud. This signals that we are in a transformation phase where the resilience of mainframes collides with the agility of cloud computing.
Cloud and mainframe in the banking sector
25% of respondents also recognize a growing trend towards cloud migration, driven by advances in artificial intelligence. This heralds a new era in which AI’s ability to reinterpret legacy code, coupled with the scalability of cloud technology, will accelerate modernization and transformation initiatives, suggesting that the long reign of the mainframe is nearing its end.
Kaz Nishihata, Direttore e Senior Executive Vice President, NTT Data Group Corporation
Banks are not only evolving from a technological point of view, but also from a cultural one. The industry’s rapid adoption of AI and cloud is redefining its business models and establishing new rules of leadership. This technological wave is pushing banks towards a deeper understanding of customer needs, offering faster, safer and more personalized services.
The research also found that The banking industry is rapidly embracing the transformative power of generative AI, with 45% of banks already incorporating it into their businesses. Additionally, 30% are exploring its potential, signaling a proactive shift towards innovation. This adoption highlights the industry’s commitment to future-proof its services, and organizations’ desire to improve their competitive advantage in a rapidly evolving digital landscape.
The trend towards generative AI in banking is a testament to the industry’s desire to move beyond traditional mainframes, leveraging cloud environments to strengthen security, improve robustness, innovate, and redefine itself without qualms. This transition promises a new era of innovation.