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Survey Reveals Outdated Legacy Systems as the Banking Sector’s Greatest Challenge in a Tech-focused Landscape

Banking Sector Faces Technological Challenges Amidst a Changing Interest Rate Environment

As the interest rate environment continues to exert pressure on the banking sector, recent insights and data gathered from banking, fintech, and financial professionals at FinovateFall in New York shed light on the current situation. The data, shared with CI, focuses on banks’ efforts to accelerate digital transformation.

According to the survey conducted, outdated legacy systems pose the greatest technological challenge for the banking sector in a rapidly evolving technology-focused landscape. It is reported that 44% of respondents express this concern.

Nevertheless, a majority of professionals remain optimistic about the potential technological advancements that the banking industry can achieve. Furthermore, 88% of respondents predict that technology will play a bigger role in driving revenue at their respective companies next year, compared to projections for 2023. Additionally, 63% of professionals believe that the banking sector will accelerate its digital transformation efforts in the coming year.

In terms of innovation prioritization, respondents believe that leveraging artificial intelligence (AI) and/or machine learning to enhance personalized advice and partnering with fintech companies to expand services or improve functionality are key considerations for banks in the year ahead.

Looking towards the future, the survey reveals that embedded banking and payment automation are the innovations expected to be prioritized by banks in 2024, with 32% and 28% of respondents highlighting these areas respectively.

Chris Giamo, Head of Commercial Banking at TD Bank Group, delivered a keynote address on the human side of innovation at the conference. He commented on the survey findings and highlighted their implications for the industry.

TD Bank Group, also known as TD, is the sixth largest bank in North America by branches and serves around 22 million customers across various financial centers worldwide. With a strong team of over 85,000 employees, TD Bank aims to deliver seamless customer experiences and has positioned itself as “the Better Bank.”

Last year, TD Bank announced a collaboration with DailyPay, a fintech company offering an innovative on-demand pay solution. This collaboration enables TD Bank clients to provide their employees with real-time access to earned pay prior to their scheduled payday, offering greater flexibility and financial stability.

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