Insights
Infosys Bank Tech Index Volume 6: Retail and Regional Banks
Retail and regional banks are treating core modernization as a strategic necessity rather than an incremental upgrade, with more than nine in ten committing over 10% of their technology budget to replacing legacy systems that carry technical debt, regulatory friction, and costs that no longer scale. The motivation has shifted decisively toward customer outcomes: banks are modernizing to launch new propositions faster, personalize at scale, and free their data for AI, not simply to cut cost. That shift is visible in how customers now engage, with roughly two-thirds of interactions moving through digital channels while branches are redesigned around advice rather than routine transactions. AI is already embedded across customer service, cybersecurity, and business operations, and about six in ten deployed initiatives generate measurable business value. But none of it works without trust, as data privacy and security remain the leading barriers to wider AI adoption and the biggest brakes on cloud migration.
Key highlights include
Core modernization has become a mandate
Over 90% of retail and regional banks allocate more than 10% of their technology budget to modernizing legacy core systems.
Customer outcomes, not cost, now drive the agenda
More than a third of banks rank improving customer experience as their top modernization driver, ahead of cost reduction.
Customers have moved online
About 64% of customer interactions now flow through digital channels.
Download the report to explore more.
For the complete findings across all banking segments, read the Infosys Bank Tech Index – Volume 6, or visit the Bank Tech Index home page to browse the full series.
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