KPMG has outlined a series of strategies for banks to overcome the challenges of outdated legacy infrastructure while keeping pace with rapidly rising customer expectations and tightening regulatory demands.
The professional services firm said that targeted investments in digital transformation, cloud-based solutions, and agile methodologies will be critical for financial institutions aiming to remain competitive in a fast-evolving marketplace.
Speaking on CNBC Africa about modernising core banking systems in Africa, Stella Adibe, Senior Manager, Tech Platforms at KPMG West Africa, described the limitations of traditional monolithic banking architectures, which often slow innovation, restrict agility, and hinder seamless customer experiences.
According to Adibe, adopting modular system designs, robust migration strategies, and future-proof technology platforms will allow banks to respond more effectively to market demands while improving scalability and resilience.
She emphasised that the shift away from legacy systems requires more than just technology upgrades. “Pre-implementation assessments, governance checks, change management, and rigorous testing must be embedded in the process to ensure that modernisation delivers on its promise of operational efficiency and improved customer satisfaction,” she said.
Adibe also noted that the ongoing transformation in the banking sector is not solely a technology challenge but a broader strategic imperative. The convergence of customer expectations for instant, personalised services, regulatory shifts, and competitive pressure from fintechs means banks must reimagine both their service models and operational frameworks.
KPMG’s recommendations underscore that while modernisation can be complex and costly, the long-term gains in efficiency, innovation capacity, and customer loyalty make it a necessity rather than an option.
For African banks, particularly those operating at scale, the transition to more agile, digital-first systems could determine their ability to thrive in the next decade of financial services.
READ ALSO: Efficiency in everyday banking: Key driver of customer satisfaction —KPMG Report
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