Generative AI is a 'game changer' for Australian banks still relying on ancient code
Generative AI promises new services, better advice, more efficient compliance and cleaner coding, but for banks one of its most effective uses is in renovating the oldest tech.
For all the fanfare around generative AI, a more mundane application is proving to be among the most valuable for financial institutions: renovating legacy systems.
The replacement or upgrade of core banking platforms, many of which are decades old, has proved an intractable problem for banks as the projects typically run for years, are often incomplete, and risk major upheaval to operations given their central role.
As McKinsey & Co noted in a recent analysis “at the heart of virtually every large organisation is a massive anchor slowing a business down: the tech debt found in legacy IT systems.”
The issue is the code such legacy systems are built on, often over multiple iterations, leaving a mess of instruction and layers of complexity.
