Historical mergers, fragmented core systems, and manual overlays produce inconsistent and duplicated datasets. Legacy architecture complicates standardisation.
Structural Causes
- Multiple core platforms
- M&A integration gaps
- Spreadsheet-based workarounds
- Inconsistent data definitions
Fintech firms, lacking historical debt, deploy cleaner architectures and faster AI integration.
References: – Basel Committee on Banking Supervision, BCBS 239 – Deloitte, Core Modernisation in Banking