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Banks migrate from mainframes to AI-driven cloud tech

Generative AI is decisively facilitating the transition of banking applications to the cloud, according to nearly two thirds of industry players surveyed by NTT Data.

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Banks migrate from mainframes to AI-driven cloud tech

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This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Despite 89% of 650 banking leaders identifying as innovators, 63% still operate on mainframe systems, confirming the mainframe’s resilience, the survey shows.

However, 63% also say that generative AI is enabling the push to the cloud, indicating what NTT Data calls a "transformative phase" where mainframes’ resilience meets the agility of cloud computing.

Meanwhile, 91% report their AI and cloud initiatives are endorsed by the board, signalling strategic prioritisation. Nearly half of banks are already integrating generative AI technology into their technology stacks while a further 30% are in the early stages of looking at it.

This means that there is a skills gap, with 80% of respondents saying they are lacking a strategic framework for generative AI adoption.

Kaz Nishihata, director and SEVP, NTT Data, says: “The momentum for generative AI across the banking sector is a testament to the industry’s resolve to move beyond traditional mainframes, leveraging cloud environments to fortify security, enhance robustness, innovate, and boldly redefine. This transition promises a new era of innovation.”

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