Indian lenders need $1 billion upgrade core bank systems, says BCG

Indian lenders will need to invest $1 billion in the next five to 10 years to upgrade legacy core banking systems, according to Vipin V, managing director and partner at Boston Consulting Group (BCG).

Historically, Indian financial institutions have allocated a lower percentage of their revenue to IT spending compared to global peers. Global banks typically invest seven to nine per cent of their revenue on IT costs while Indian banks allocate only up to five per cent, Vipin said while elaborating on BCG’s report on Cloud-based Core Transformations.