Why Automation Is a Must for Financial Reporting testing 10/2

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Banks are struggling with outdated legacy systems that hinder their ability to meet modern regulatory demands, a Workiva report has found.

Despite the clear need for automation, many institutions are hesitant to invest in more advanced solutions. As a result, these institutions continue to waste valuable resources on inefficient, manual processes.

The Legacy System Dilemma

The report, commissioned by Workiva from the Center for Financial Professionals, found that despite the rise of new technologies, many banks still rely on outdated legacy systems for financial reporting. These systems, including Excel spreadsheets and SQL databases, were designed for simpler times but now create bottlenecks that hinder efficiency and accuracy. A significant proportion of banks continue to use these systems due to budget constraints or a reluctance to replace legacy infrastructure, despite the long-term costs.

Experts argue that these manual and siloed systems are unsustainable. They contribute to inconsistent data, slow report generation, and an increased risk of errors—issues that could easily be mitigated by adopting integrated, automated reporting systems. However, despite strong advocacy for automation, many banks remain hesitant to invest in these systems, often due to competing priorities or a failure to understand the true value of modernized reporting.