Skip to content
CCG Insights

Research Snapshot

  • Research Snapshot

Integration Fears Hinder AI Adoption

Integration Fears Hinder AI Adoption

Integration Fears Hinder AI Adoption

January 19, 2022

By: Kate Drew

AI Barriers in Banking

Artificial intelligence (AI) is a buzzy phrase, but it also represents a massive opportunity for financial institutions to drive efficiencies and better service through automation. In fact, as noted in our recent report, AI in Banking: Accessible Applications and Use Cases, the AI in financial services market globally is expected to reach $22.6 billion by 2025. That means we’re probably going to see this technology proliferating in many aspects of banking in the next few years, in all corners of the industry. However, as with any novel technology, bank execs are wary of potential hurdles that could keep projects from seeing success. Topping this list in a survey of financial professionals by AFP is integration into existing technology, aka legacy systems.

This is data is generally unsurprising — an inability to integrate is often blamed for why banking institutions in the US cannot leverage new technologies. That’s because many of these organizations are running on technology that is decades old and not built for ease of integration. It’s a major issue across the board that banks are dealing with as they attempt to move into a future where the ability to “plug and play” is going to be key. As we’ve discussed before, there are a couple of options for how to solve for this, including working with your core provider — all of the leading providers in the US are building application programming interface (API)-based integration gateways to make collaboration easier, though they remain largely at the start of this journey — or implementing an integration layer at the bank either by building in-house or contracting with a managed service provider. Working to modernize your infrastructure today is important because it will make implementing new technologies like AI (and many, many other emerging and promising tools) much easier in the long run, eliminating fears of drawn-out and expensive integration projects.

AI is set to make major contributions in financial services across functions like customer service, loan underwriting, risk management, and more. By automating key internal processes or allowing AI to step in for a customer-facing employee on occasion, banking providers can bring costs down and improve experiences dramatically. However, it’s not just about this one technology, it’s about being able to integrate with an array of solution providers of your choosing easily and at low cost. All vendors including in the AI space will work with you to integrate to systems as needed, but is that really practical? Does it make sense to constantly look to clear just the next hurdle? Probably not. And it’s likely to lead to hesitation to pursue these technologies in the first place. Instead, we should be striving to create an environment that supports an overall strategy of openness. That is the future. And it’s just about here.


Subscribe to CCG Insights.

You Might Like These, Too

AI In Banking - Accessible Applications and Use Cases

AI in Banking: Accessible Applications and Use Cases

Time to Create a Strategic IT Roadmap

Time to Create a Strategic IT Roadmap

Open Banking: What Does It Mean for the US?

Open Banking: What Does It Mean for the US?

Automation Seems to Worsen Present IT Skills Shortage

Automation Seems to Worsen Present IT Skills Shortage

Leaders in Bank Consulting

About CCG Catalyst
Latest Insights
CCG

PHOENIX • NEW YORK • LONDON • SINGAPORE

Phone: +1-480-744-2240  • Contact Us

© 2023 CCG CATALYST CONSULTING. Privacy Policy & Terms of Service.
Request a Call Back
Linkedin Twitter
Subscribe
to our Insights
Subscribe
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
BANK
FINTECH
FUSION
  • About
  • Services
  • Insights
  • Fintech
  • Research
  • Team
  • Contact
  • Press
  • Careers
  • Events
  • RFI / RFP
  • Terms
  • Privacy
Linkedin Twitter Search
Subscribe for Insights

CCG INSIGHTS FOR BANKS, FINTECHS, AND CREDIT UNIONS

The Fed, Real-Time Payments, Alexa and Apple P2P, Part of Payment Revolution
  • Weekly digest of what's new
  • New research snapshots
  • Exclusive access to banking and fintech research
  • Industry news
  • Invitations to webinars and webcasts