It may be a market myth that one UK bank still operates an information technology system recording payments in shillings, a unit of currency abolished in 1971. But almost all established lenders worldwide need to upgrade their byzantine and creaking IT infrastructure. They’re also facing a disconcerting new threat: new entrants basing payments and current-account checking on smartphones. The benefits of getting it right – and the costs of getting it wrong – will be immense. Globally, more of banks’ revenue goes on IT than any industry bar the tech sector itself, according to Accenture. But three-quarters of the $188 billion earmarked by banks’ IT spend for 2014 just keeps their antiquated retail banking businesses from disintegrating. The combined hardware and software platform used to manage savings and current accounts – known as a "core banking system" – is typically the most ancient part of a bank's IT architecture. Instead of regular upgrades, most banks have plonked new systems
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