Why banks need to rethink functionality now and not later

The real work of modernising banking today

Banking goals haven't shifted. Cost, growth, resilience, compliance and customer experience still define success. The environment around them has changed, and the old playbook is slower and more expensive than it used to be.

The banks pulling ahead are focusing on the things that actually move the needle: digital sovereignty, the partnerships and ecosystems that extend their capability, and the AI infrastructure that makes modern services viable. Operational resilience runs underneath all of it.

Why banks need to rethink functionality now is a practical read on where leading banks are investing, what's slowing the rest down, and how to close the gap between strategy and execution.

Strategy is the easy part. Execution is the test.

Banks are under constant pressure from regulators, customers and competitors, while carrying the weight of legacy systems and compliance obligations that demand a disproportionate share of funding, resources and time.

The institutions that continuously modernize functionality will stay ahead, by combining technological progress with governance, partnership and operational discipline at every layer of their operations Our report outlines NTT DATA's recommendations to help banking leaders:

• Pinpoint the structural forces making existing functionality unfit for purpose.
• Operationalize AI with human oversight and measurable, traceable returns.
• Build operational resilience into technology, processes and people.
• Scale AI responsibly through strategic partnerships, internal capability and AI-ready infrastructure.

What’s inside:

• Digital sovereignty as the new fault line. Why data localisation, sovereign AI and regional infrastructure now shape where banks can operate, and how new rules and regulations are rewriting the game.
• The power of partnerships. How the smartest banks are bringing innovation inward through fintech partnerships, equity stakes and shared capability, rather than trying to build everything themselves.
• AI infrastructure is the real bottleneck. GPUs, power, cooling, and network capacity. Why AI ambitions keep hitting physical limits, and how consolidation strategies like the NTT DATA AI Factory change what's possible.
• Operational resilience as a business outcome. How resilience has outgrown the compliance checkbox to become foundational to growth, trust and scale.
• Why execution is harder than strategy. The compliance load, legacy drag and governance cycles that even the most willing banks can't sidestep.