40% of FIs Say Legacy Systems Are Holding Them Back | Bottomline

Bottomline report reveals that 40% of financial institutions (FIs) globally cite legacy systems as their primary payments infrastructure challenge — a barrier that limits their ability to meet growing customer expectations. Post-COVID, the drive for payment digitalisation has intensified, with customers demanding speed, seamless experiences, intuitive interfaces, and robust security.

While traditional banks benefit from heritage and trust, challenger banks and emerging FIs, often built on SaaS and APIs, are leveraging modern infrastructure to scale and innovate. Payment modernisation has become a competitive necessity.

The report highlights that 44% of FIs believe Software-as-a-Service (SaaS) can enhance operational efficiency and scalability. Beyond the statistic, respondents point to key capabilities SaaS delivers: centralised visibility of payment flows in real time; unified access to multiple services; robust connectivity across real-time and open banking ecosystems; improved data utilisation; and stronger compliance and fraud prevention.

In an era of complex, fast-moving payment networks, SaaS enables institutions to adapt, protect customers, and grow. The findings make one thing clear: modernisation isn’t optional — it’s the foundation for maintaining competitiveness and trust in the payments landscape.

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