• Simon Ratcliffe, Principal Consultant at Ensono


• 01.02.2019 11:00 am
undisclosed

If banks fail to upgrade their IT systems with due diligence and proper management, they can easily find themselves suffering significant financial losses like this. In TSB’s situation, this loss was inevitable considering the extent of customer compensation and the large number of customers who have subsequently switched their bank.

If legacy infrastructure is not maintained and modernised, then other banks will face a similar situation. As those with relevant knowledge retire, and legacy skills decline, it’s becoming increasingly difficult to maintain these systems without outsourcing.

However, legacy mainframe systems should not be considered a burden. Quite the contrary – these systems are still the most appropriate technology available for processing high-volume transactions. It’s no coincidence that 92 of the world’s 100 top banks continue to rely on the mainframe. Retail banks readily understand mainframe’s ability to handle massive volumes of transactions securely, and efficiently. 

Leveraged in the right way, ‘legacy’ can even become a competitive advantage. The most innovative banks have armed their mainframes with encryption capabilities which bolster security, and with analytical tools which provide greater insight into the customer experience.