In 2015, this will remain a critical investment, with retail banks spending US$22 billion on core banking projects. This is an increase of 4% from 2014 and it will continue to grow, reaching US$26.2 billion in 2019.
"In the rush that will undoubtedly occur to deliver front-office innovation to drive growth, banks must resist the temptation of short-term developments for quick revenue wins," Hines concludes.
"Customer expectations will evolve and banks must ensure back-office agility is retained, meaning it's able to deliver future innovations. This means any new developments must be delivered according the enterprise architecture principles.
"The benefit of long-term planning, particularly in regards to legacy modernisation, will pay dividends for banks in the coming years."
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