Approximately 30% of CIOs believe that more than 20% of their technical budget is diverted to resolving issues related to tech debt, according to McKinsey.
This significant burden underscores the challenges that financial organizations face in modernizing their systems. In his Financial IT article, our CTO, Rupert Colbourne, discusses how enterprise architecture can play a critical role in reducing technical debt while helping financial institutions achieve compliance with regulations such as DORA (Digital Operational Resilience Act).
Technical debt: The hidden cost in financial transformation
In the financial sector, technical debt – accumulated issues from legacy systems and rushed development cycles – can pose substantial risks. Rupert explains that this debt hinders innovation, drives up operational costs, and creates vulnerabilities. By mapping out and managing the IT estate, enterprise architecture helps financial institutions identify and mitigate technical debt, ensuring that digital transformation initiatives do not exacerbate these hidden costs.
Achieving DORA compliance through enterprise architecture
With DORA setting stringent resilience standards for financial institutions across the EU, compliance is now a top priority. Rupert emphasizes that enterprise architecture provides a strategic framework to align technology systems with DORA’s requirements, ensuring financial organizations can meet regulatory expectations without sacrificing agility. By offering a comprehensive view of the IT landscape, enterprise architecture allows leaders to streamline compliance processes, effectively manage risks, and prepare for future changes in the regulatory landscape.
Enhancing resilience with a strategic blueprint
Enterprise architecture serves as a roadmap that helps financial organizations strategically align their resources, technology, and compliance efforts. Rupert points out that by managing technical debt and supporting regulatory adherence, enterprise architecture enables financial institutions to become more resilient and agile. This not only supports current compliance with DORA but also prepares organizations for a more robust and sustainable future.
Read the full article on Financial IT