In its latest Retail Banking Report, Endava explores FI methods for satisfying customer demand and discovers that 75% of organizations think they provide a pleasant user experience, have robust data management procedures, and superior technology than their rivals.

Though more than half of the FIs have shifted to cloud-based core systems, the responses indicate challenges with their implementation, scalability, and management. Concerns about fraud and security (29%), fear of a drawn-out deployment (32%), lack of technical resources to manage it (37%), and competing technological goals (40%) are the main obstacles to establishing a cloud-based core.


"FIs have come a long way in embracing the fact that modern banking and a cloud-based core go hand in hand," said Fred Fuller, worldwide head of banking at Endava. Additionally, banks understand that modernization does not entail moving a legacy monolithic core to the cloud.

"In order to genuinely modernize the core and build a dynamic, adaptable infrastructure that can react fast to market and customer needs, they must make use of contemporary digital technology. While financial institutions (FIs) may believe that their technology outperforms that of their rivals, the truth is that new features and functionalities are typically built on older systems, severely limiting their ability to innovate.


They will be better able to embrace customer-centric banking by collaborating with technology partners who are capable of managing and implementing a new core. In order to maintain market share, they must be able to swiftly introduce new goods and services and secure and streamline their internal operations.

Modernizing current technology is still very important.

The report takes into account economic forces including building a more profitable and devoted customer base, in addition to the rising interest rates and inflation that FIs continue to face. Increasing efficiency (85%) and customer retention (83%), along with enhancing the digital customer experience (85%), preserving system stability (83%), and bolstering security/reducing fraud (83%), were named as the top goals by financial institutions for the upcoming year. Many businesses are now looking to new technology to enhance internal operations and customer-facing products in order to fulfill these aims.

Even if the majority are still in the early phases of adoption, it makes sense that half of FIs believe that AI is the best area to invest in, with data analytics coming in second (45%), since both can provide effective real-time fraud detection, virtual assistants, security, and investment management.

Upgrading payment gateways (81%) and open banking (81%) are high or very high priority when it comes to their current technology. By focusing on these areas, they may become more customer-driven and generate more income, which will help them address persistent difficulties.