Mainframe's Role in Financial Services Modernization

This IDC Perspective discusses the critical role of mainframes in the financial services sector. It highlights that over 90% of financial institutions utilize mainframes, which process more than 95% of noncash transactions globally. The document outlines the reasons for the continued reliance on mainframes, including their resilience, speed, security, and scalability. It also addresses the modernization of mainframes, driven by technological advancements such as AI and the need to support new workloads while maintaining data sensitivity. Various modernization approaches are presented, including modifying existing systems, upgrading components, and migrating applications to cloud environments. The report emphasizes the necessity for financial institutions to develop a mainframe strategy that includes workload audits and cost analyses to ensure that mainframes remain a vital resource. IDC Financial Insights projects continued investment growth in mainframe platforms, driven by modernization efforts to meet future demands.