As advancement in technology continues to accelerate, the modernization in underlying data architecture will be paramount to the widespread adoption of open banking and AI.  

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Summary

Adjusting to an environment where there is an increasing focus on the efficiency of innovation delivery, as well as cost discipline overall, may be a culture shock for some, but Omdia’s Trends to Watch 2024: Retail Banking report shows nearly 80% of retail banks plan to increase IT spending over the next 18 months. As advancement in technology continues to accelerate, the modernization in underlying data architecture will be paramount to the widespread adoption of open banking and AI. 

Core banking will see accelerated uptake

Digital banking IT projects were at the top of the priority listfor several years. Having already heavily invested in their digital capabilities and front-office modernization, many banks arefocusing on their core banking to improve their capabilities.Concurrently, the industry isseeing a rise in innovation and competition from newer entrants such asfintechs, big techs, and companies tapping into banking as a service(BaaS) models. That is why the key drivers for infrastructure investment includeenabling agile and scalable development, improving brand perceptionand reputation, and launching innovative products and services (see Figure 1).

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