Corporate Banks Lean Towards In-House Technology Development
Recent research highlights a significant shift in the approach of corporate banks toward technology integration, as many are opting to develop their solutions internally. A report by NTT Data reveals that 61% of banks prefer to build their own technology stacks rather than purchasing from third-party vendors.
This shift from the longstanding preference to buy rather than build has been accelerated by evolving client expectations and an increasing demand for digital services. The report indicates that corporate banks are currently facing a substantial challenge in addressing these demands.
While a majority of banks are investing in in-house development, only 22% are constructing completely new systems. The remaining 78% are enhancing their existing cash forecasting systems to better meet the needs of their clients.
Miguel Mas Palacios, Director of Global Corporate Banking at NTT Data, commented on this trend: “There’s a growing demand for a robust technology stack in banking, spurred by client expectations. The dilemma for banks is whether to develop their own technology or procure it externally.”
He further noted that the pace of change in corporate banking is quickening, with banks increasingly adopting innovative technologies such as artificial intelligence and automation—all driven by the demands of their clientele.
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