Baringa Survey Finds that Legacy Tech Infrastructure Remains a Challenge for Banks as Demand for Digital Banking Grows

NEW YORK, Sept. 16, 2025 (GLOBE NEWSWIRE) -- Legacy technology systems and infrastructure may be keeping banks from meeting growing customer demand for digital banking, according to new research from Baringa, a leading global management consultancy.

Baringa found that 62% of bank customers have switched or considered switching banks because their institution’s digital products or services didn't meet their needs. Yet, 68% of banking leaders said their institution’s current technology architecture is a hindrance to supporting customer needs.

The report highlights the technology challenges banks and financial institutions face amid changing customer preferences for banking products, features, and experiences. Baringa polled 4,000 U.S. and UK consumers with bank accounts about their banking habits and preferences, and separately surveyed 400 U.S. and UK banking leaders about how they are digitizing customer experience.

David McGibbon, a partner at Baringa, said: “Our research shows that consumers don’t change their banks often, but digital experience is a key driver when they do. While 90% of bank leaders believe their institution performs well against digital experience, consumers are looking for better app and website experiences. The challenge for banks in this rapidly changing and uncertain market, is that many institutions also face technology challenges including cybersecurity risk, scalability and integration complexity, complex enterprise architecture and legacy systems.”

Consumer Demand for Digital Banking is Growing

Half of bank customers surveyed have changed their main financial institution in the past decade, and 36% have changed their main bank within the past 5 years. The drivers of bank primacy have evolved over the past decade, as security (+378%) and digital experience (+145%) have seen significant growth as key reasons cited by consumers for changing banks.

The study found that 80% of consumers ages 18-54 are comfortable having an entirely digital relationship with their bank. While 59% of respondents in this cohort reported being satisfied with the digital experience their bank offers, satisfaction declined with age, with only 53% of consumers 18-24 saying they are satisfied.

Legacy Technology Barriers for Banks

Two-thirds of bank leaders estimated that the oldest programming code operating within their technology system was written prior to 2000 and 30% estimated their oldest technology infrastructure to be from the 1960s or earlier. The areas most cited as the oldest legacy systems included payments and transaction processing, customer relationship management (CRM), and call center support.

Knowledge sharing related to legacy systems and infrastructure is also a challenge for many banks. More than three in four bank leaders (77%) said their institution employs only one or two people who have the skills and experience to work with the oldest technology within their infrastructure and 67% said a failure of their oldest code/technology would be catastrophic.

Some institutions are hesitant to invest in new technologies that are constantly changing and improving.
Nearly one in five bank leaders said the biggest risk associated with digital technology investments is choosing technical products that are not able to evolve with emerging challenges.

David McGibbon said: “Having pockets of old technology is unavoidable for many financial institutions. However, some legacy systems and infrastructure pose additional risks that organizations must address. Bank leaders must be strategic about which aspects of their systems and infrastructure they invest in to minimize risk, ensure stability, and drive customer satisfaction. Doing so won’t just solve a technical problem, but the smoother working of the business and the greater customer experience this allows will build customer satisfaction and loyalty, increasing the bank’s performance in all areas”

Baringa surveyed 400 U.S. and UK business leaders at financial institutions with at least $500 million in annual revenue and AUM from March to April 2025. The firm polled 4,000 U.S. and UK consumers between March and April 2025. Read more about the report here: https://www.baringa.com/en/insights/architecting-loyalty-in-financial-services/retail-banking-survey.

About Baringa
Baringa is a global management consultancy operating across sectors including energy, financial services, consumer products and services and government.

We set out to build the world’s most trusted consulting firm – creating lasting impact for clients and pioneering a positive, people-first way of working. We work with everyone from Fortune 100 names to bright new start-ups, in every sector. We have hubs in Europe, the US, Asia and Australia, and we can work all around the world – from a wind farm in Wyoming to a boardroom in Berlin. Find us wherever there’s a challenge to be tackled and an impact to be made.

Find out more at baringa.com or on LinkedIn and Twitter.

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