Migration Crisis: Survey Finds Only 8.7% of Lending Industry Has Modernized
The results of Carleton’s inaugural Platform Migration and Modernization Survey show 87% of consumer finance executives are in the process of modernizing aging technology infrastructure and only 8.7% have finished.
Nearly three-quarters (74%) of respondents say their current environment is “primarily legacy” while 10.6% are operating a fully cloud-based platform.
Compliance and accuracy concerns alone should compel faster adoption, analysts say, but concerns over cost and disruption remain prevalent.
“The survey findings echo what Carleton hears in sales and client conversations every day,” writes Tim Yalich, Carleton’s vice president of business development, in a release. “Institutions still running on legacy systems, some more than two decades behind their industry peers on technology, are not simply managing aging infrastructure. They are limiting their ability to compete, to grow into new states or asset classes, to integrate with modern fraud prevention tools, and to access the AI-enabled capabilities that are rapidly reshaping how lending decisions are made and monitored.”
