Why Banks Spend $60 Billion a Year on Core Banking - Martin Della Chiesa, (CEO,Skaleet)
40 pts · Notable·Fintech Wrapup·9w ago · Aug 21, 08:00 UTC·1 min read
Upvote this story — the week's most-upvoted make the email digest
Banks collectively allocate over $60 billion annually for core banking systems, indicating a significant investment in infrastructure. Despite this expenditure, many financial institutions continue to rely on outdated technology, which raises questions about operational efficiency and innovation potential within the sector.
Key takeaways
- ▸Banks spend over $60 billion a year on core banking services.
- ▸A significant portion of these systems remains based on decades-old technology.
- ▸The investment highlights a gap between spending and technological advancement.
Why this matters
The ongoing reliance on outdated core systems presents a competitive disadvantage for banks, limiting their ability to innovate and respond to modern consumer demands. This disconnect could signal opportunities for fintech firms that offer modern, agile alternatives, potentially reshaping the competitive landscape of banking.
Entities
Companies: Skaleet