Towards the end of last year, an IT trade body in the UK released a report calling for financial regulators to force banks to overhaul their technology infrastructure. This came on the heels of a massive tech outage at one of the country’s largest banks that locked nearly 12 million customers out of their accounts for almost a week.
Now, the extremely technology-intensive banking sector spends nearly three times more on IT, as a percentage of revenue, than the average of all industries. But still, the report called for ‘infrastructure renewal’. Why? Not because the infrastructure was dated, but because it was far too complex.
IT infrastructure complexity is not restricted to UK banks; it’s a global phenomenon. To understand how things came to such a pass, one need only look at the evolution of banking over the past few decades.
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