From Ageing Systems to Automation: How CTOs Are Approaching Modernisation

TL;DR: Financial services CTOs at SBS Summit 2025 highlighted that successful digital transformation requires addressing legacy infrastructure whilst avoiding AI tool proliferation. The key challenge: unifying technologies strategically rather than deploying multiple agents without clear business value.

Speaking at SBS Summit 2025 in Paris, Andrew Steadman, Chief Product Officer at SBS, addressed the critical challenges confronting financial institutions as they navigate technology modernization efforts.

Context and Background

Steadman emphasized that meaningful discussions around digital transformation cannot proceed without acknowledging aging systems and legacy infrastructure: “Such conversations can’t be had without referencing ageing systems and legacies, and how these have caused fundamental blockers.”

Financial institutions face two interconnected challenges:

  1. System Adaptation - How to modernize existing legacy infrastructure
  2. Technology Integration - Embedding AI and automation safely without causing operational disruption

These challenges are particularly acute in financial services, where legacy systems often underpin critical operations and regulatory requirements constrain rapid change.

The AI Tool Proliferation Problem

Steadman highlighted a critical issue affecting many organizations: the proliferation of AI agents and tools without clear strategic alignment. He noted that some institutions have deployed numerous agents but struggle to determine which actually deliver measurable business value.

This pattern reflects a broader industry trend where organizations rush to adopt AI technologies without establishing frameworks for evaluating effectiveness or ensuring tools serve genuine business needs rather than simply demonstrating innovation.

Looking Forward

The speaker stressed the necessity for “better unification of these technologies and processes” when building data quality frameworks or deploying AI agents. Successful modernization requires structured, deliberate implementation approaches rather than ad-hoc technology adoption.

For financial institutions navigating this landscape, the message is clear: strategic alignment must precede tool deployment. Organizations should establish clear evaluation criteria for AI initiatives, focusing on measurable business outcomes rather than technology adoption metrics.

The challenge isn’t whether to modernize or adopt AI—it’s how to do so in a way that addresses legacy system constraints whilst avoiding the creation of redundant tools that fail to deliver value.

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