A survey sponsored by Finacle, the banking system division of Infosys, and carried out by Ovum questioned 65 senior executives at banks in Europe and found that 3/4 of banks in Europe are using out-dated core systems which are holding the banks back and restricting growth.

The research also found that 79% of the banks questioned blamed the complexity of IT and a shortage of the right in-house skills for complicating the replacement of legacy core banking systems.

Daniel Mayo, practice leader financial services technology at Ovum said: “There is a clear disconnect between market needs and market capabilities when it comes to core banking systems. Many banks are trying to restore revenue and drive growth through better servicing and cross-selling to their existing customer base.”