1、1Thought Machine|Transform banking.Transform core.Transform banking.Transform core.1Thought Machine|Transform banking.Transform core.Authors:Robin ZhangDirector of Marketing,North AmericaThought MBrian DempseyDirector of Partnerships,North AmericaThought MIntroduction“There are several things I woul

2、d like to see done differently within the banking system,but I will say No.1 is something that concerns me on a longstanding basis,which is the legacy systems.I think a lot of these banks and Ive learned this firsthand when I worked at a bank a lot of these banks have legacy systems that frankly are

3、 impeding their ability to move forward.”Jelena McWilliamsFDIC Chair As the world enters the cloud generation,mainframe-based banking platforms are nearing an evolutionary dead end.Slowly but surely,the banks entire technology ecosystem from the programming languages,the operating systems,the hardwa

4、re,to the way their IT organizations operate will all be in need of modernization.The situation is worsened by the shrinking talent pool needed to keep the legacy systems alive.2Thought Machine|Transform banking.Transform core.The scale of the problemDecades of M&A activities are further exacerbatin

5、g the challenges facing the banking technology infrastructure as disparate,incompatible back-end systems collide.The term“Spaghetti systems”is often used to describe the tangled mess of interconnected systems and applications within a banks technology stack.These complex systems can cost a bank bill

6、ions of dollars to simply maintain.It is projected that banks globally will spend US$309 billion on IT cost in 2022,with US$120 billion in North America1.On top of ballooning operating costs,banks are facing the threat of upheaval:frequent outages due to system upgrades,limited digital banking offer