Banks prioritize measurable returns on technology investment, Finastra says
XLF•Finastra’s banking industry analysis says banks are prioritizing measurable operational gains over novelty in technology investment. It cites estimates that AI could improve efficiency ratios by up to 15 percentage points.
1. Focus on measurable gains
Banks are becoming more selective about technology investment, prioritizing operational gains over novelty, Finastra’s analysis said. Citing PwC estimates, it said AI could improve banks’ efficiency ratios by up to 15 percentage points, but realizing those gains requires workflow redesign, trusted data and risk-based oversight.
2. Incremental modernization
Many institutions favor incremental modernization over large-scale replacement, seeking to build on existing investments while reducing implementation costs and risks.
