Digital Banking: A Blueprint for Modernizing Legacy Systems

Abstract

In this research, the rapid evaluation of digital banking has exposed crucial challenges for financial institutions relying on legacy systems. Traditional banking infrastructure is often outdated and struggles to meet the increasing demands for seamless, real-time digital services. These limitations hinder customer experiences and operational technologies like AI, blockchain and cloud computing remain complex due to compatibility issues with legacy frameworks. This research explores the barriers to these challenges to remain competitive in the era of fintech disruptions. Thus, this research chooses secondary data information to improve the legacy systems' importance in the financial institutions and banking sectors. Also, this research explores the barriers to modernizing legacy banking systems and assessing key technological, and regulatory constraints. By identifying best practices, this research aims to provide a comprehensive blueprint for banks seeking to transition into fully digital financial ecosystems while ensuring scalability and security.