SIGNALInfrastructure Software·Jun 16, 2026, 7:16 AMSignal75Medium term

Ron van Kemanade, Group COO, Lloyds, on agents, COBOL, automating fraud detection

Source: The Stack

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"Half a year ago, if I would have gone in and said, 'guys, we have 200 COBOL applications, let's refactor all of them!' they would probably have run for the woods.”

Why this matters
Why now

Financial institutions are increasingly facing pressure to modernize legacy systems, often driven by the competitive landscape and the need for greater agility, as advancements in AI make automation more feasible and attractive.

Why it’s important

This indicates a growing willingness among large, traditionally conservative institutions to tackle deep-seated modernization challenges, potentially unlocking significant efficiency gains and competitive advantages.

What changes

The perception of 'unrefactorable' legacy systems like COBOL is changing, with AI and automation now seen as viable pathways to modernization, rather than just an impossible cost or risk.

Winners
  • · AI/automation platforms
  • · Cloud migration services
  • · Financial technology companies
Losers
  • · Legacy system vendors
  • · IT departments resistant to change
Second-order effects
Direct

Increased investment in AI-driven legacy system modernization strategies within financial services.

Second

A wave of talent retraining and reskilling for new automation tools, possibly leading to a shortage of traditional COBOL developers.

Third

Enhanced speed and accuracy in financial operations, potentially lowering operational costs and improving service delivery, while also creating new vectors for highly automated cyber threats.

Editorial confidence: 90 / 100 · Structural impact: 55 / 100
Original report

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