What's Happening?
Financial services firms are facing challenges with outdated core IT systems that were not designed for modern digital demands. These legacy systems often lead to isolated data pockets, hindering collaboration and compliance. To address this, firms are considering an 'agility layer' approach, which allows for incremental modernization without the risks associated with a full system replacement. This method involves using an AI-powered orchestration framework to connect old and new systems, enabling innovation and improved data integration.
Why It's Important?
The modernization of financial services' core systems is crucial for maintaining competitiveness in a rapidly evolving market. By adopting an agility layer, firms can avoid the disruptions and costs of a complete system overhaul while still achieving the benefits of modern technology. This approach allows for faster innovation, better compliance, and improved customer experiences. It also helps firms manage technical debt and operational risks, providing a strategic advantage in the financial sector.
What's Next?
Financial services firms are likely to continue exploring and implementing the agility layer approach to modernization. This strategy involves mapping current systems, identifying inefficiencies, and targeting high-impact areas for improvement. As firms adopt this incremental approach, they can expect to see measurable benefits and lay the groundwork for broader transformation. The agility layer could become a standard practice for firms seeking to modernize without the risks of a full system replacement.
