Corporates' demands for digital services are leading a majority of corporate banks to look in-house when building their technology stack, according to recently published research.
The report from NTT Data found that 61% of banks are preferring to build their own technology stack rather than buy one from a third party.
The reversal of a long-established trend to buy rather than build has been accelerated by changing client expectations and the demand for more digital services, according to NTT.
This has left corporate banks with a "major dilemma" when it comes to meeting this demand, states the report.
But while the majority of banks are building their tech in-house, only 22% are choosing to build systems from scratch with the remaining 78% opting to build upon their current cash forecasting systems.
“There’s a tech stack demand that’s building for banks, and change is being demanded by their clients. The conundrum is whether banks build their own tech, or buy it in,” said Miguel Mas Palacios, director of global corporate banking at NTT Data.
“We’re seeing the speed of corporate banking is accelerating, and the pace of technology change is increasing too. Banks are investing in new technologies such as AI and automation, all driven by customer demand.”
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