Modernisation is moving from an IT project to a core test of operational excellence in financial services. Kyndryl's 2026 Modernization Report, which surveyed 2,000 business and technology leaders across 12 sectors and was reported by FF News, finds more than one in five banking and financial services organisations see limited or unclear value from modernisation. For Irish financial services leaders, already working under Europe's digital resilience rules, the finding is a prompt to turn technology spend into measurable outcomes.

The report is better read as a roadmap than a warning. Andy Hughes, SVP GTM at Kyndryl UK and Ireland, said the real modernisation test is whether investments improve operations, make services more responsive, and deliver meaningful value to customers. Significant gains are already visible. The opportunity now lies in three areas: customer outcomes, delivery pace, and operational resilience.

Customer outcomes come first. While 38% of banking and financial services organisations cite agility, innovation, and scalability as their primary modernisation drivers, only 36% report a major improvement in customer experience. Half have achieved faster delivery of new capabilities, products, or features, and 42% have reduced operating or infrastructure costs. Hughes urged leaders to align technology decisions with commercial priorities and break down silos between business and IT teams, the foundation of any business transformation that lasts.

Delivery pace comes second. Half of financial services organisations admit they are behind schedule on modernisation objectives, and 49% say postponement has left them unable to adopt new capabilities with the necessary speed. Closing that gap is an operational efficiency opportunity as well as a technology one. Hughes advised treating modernisation as a continuous process rather than a series of isolated projects.

Operational resilience comes third, and Ireland has a clear regulatory anchor. The EU's Digital Operational Resilience Act took effect in January 2025, and the Central Bank of Ireland's 2026 Regulatory and Supervisory Outlook describes services resilience and effective ICT risk management as non-negotiable. The Central Bank's Financial Stability Review 2026:I adds that the importance of Irish banks continuing to invest in operational resilience remains high. Modernisation that strengthens resilience therefore serves both regulators and customers.

Three practical steps follow for Irish leaders. First, attach clear customer experience and cost targets to every modernisation programme, so that investment is judged by outcomes. Second, re-baseline delivery timelines and give joint business and IT teams shared ownership. Third, build continuous improvement into modernisation, pairing each release with resilience testing aligned to DORA expectations.

Kyndryl's research shows modernisation is becoming a business capability, not a one-off project. Irish financial institutions that tie modernisation to customer value, delivery speed, and resilience will be well placed to compete across European markets and to sustain growth in the years ahead.