2026-01-18 03:23:57

The technical issues of large financial institutions often stem from disorderly expansion. Rapidly scaling through mergers and acquisitions without truly unifying the underlying system architecture has resulted in a reliance on third-party IT outsourcing to maintain operations. These legacy problems have hindered efficiency and innovation speed. However, the emergence of AI has changed this situation—companies now have the motivation and tools to completely resolve these technical debts instead of continuing to outsource to contractors. This wave of AI may be precisely what drives traditional institutions to accelerate modernization and rebuild core system competitiveness.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

9 Likes

Reward
9
6
Repost
Share

Comment

0/400

DAOTruant

· 7h ago

To be honest, the operations by traditional financial institutions now are a bit like closing the stable door after the horse has bolted, but at least they have finally patched it. Can AI really save their mess? I'm a bit skeptical. The debt history is too deep; it's not something that can be shaken off just by the appearance of AI. The outsourcing approach is ingrained in their bones, and changing it is difficult. But on the other hand, this time is indeed a bit different, and there is a real chance to start over. They might even be overtaken by startups in a bend. In the fintech sector, I still favor native solutions, not those that are just re-engineered.

View OriginalReply0

MidnightTrader

· 7h ago

Exactly right, the traditional financial industry's "patchwork" architecture indeed needs to be changed. AI is not just about hype; it can truly cut through and solve these historical burdens. It seems those outsourcing companies' days of bragging may really be coming to an end. Damn, someone finally hit the nail on the head—the technical debt of financial institutions is outrageous. This wave of AI gives them a legitimate reason to completely overhaul, or they'll keep burning money to feed outsourcing teams. Interesting, it seems that technical debt can also be digested by AI. The legacy systems of traditional banks really need a cleanup, though it's easier said than done. This is exactly the kind of work AI should be doing—stop hyping up AGI every day. Quite interesting, at last an institution dares to face its mess. The outsourcing model should go bankrupt; AI will help you clean up the mess.

View OriginalReply0

MetaverseHobo

· 7h ago

To be honest, this is the true battlefield for AI. Compared to just hype, the real value lies in helping traditional finance shed those old burdens.

View OriginalReply0

ExpectationFarmer

· 8h ago

In simple terms, it's the long-standing mess left behind that AI is forcing to be fixed. Isn't that a good thing? AI has really cornered these major institutions; without system upgrades, there's no way out. This round is definitely a major reshuffle. Let's see who can cut losses in time. Outsourcing will eventually be phased out; AI has come at just the right time. Speaking of which, only those institutions brave enough to rebuild can survive; the conservative ones will definitely be eliminated. AI is just a tool; the key is whether these old institutions dare to take real action. The question is, who bears the cost? Renovating systems isn't that simple. The technical debt has accumulated for too long; if it can't be cleaned up thoroughly this time, don't expect too much.

View OriginalReply0

WhaleMistaker

· 8h ago

That's right, the traditional financial system's patchwork architecture should have been cleaned up long ago. However, I still have some concerns—AI tools can only address surface-level issues, what about those deep-seated organizational debts...

View OriginalReply0

ContractBugHunter

· 8h ago

Basically, it all boils down to the pitfalls caused by reckless mergers and acquisitions back then. Now AI has come to save the day, which is a fortunate coincidence.

View OriginalReply0