Global Banks Embrace Multidimensional Mainframe Modernization Strategies to Strengthen Innovation, Agility, and Competitiveness

This IDC Perspective provides an overview of the strategies major global banks are adopting in relation to their mainframe computing environments. It explores the diverse and often multidimensional strategies of global banks in relation to mainframe environments, which include a combination of efforts to upgrade their mainframe hardware and software, the migration of mainframe workloads to private and public cloud platforms, integration initiatives involving mainframe data, and the application of AI tools and capabilities to enhance the performance, efficiency, security, and utility of mainframe environments. This IDC Perspective draws on insights from State of the Modern Mainframe (IDC multiclient study, 2025), which surveyed a worldwide sample of 510 mainframe decision-makers, including 102 from financial services firms, to assess their plans for mainframe investments and usage over the next five years. This document explores the mainframe modernization strategies of five global banks, showing how those strategies illustrate both the breadth of modernization strategies used and the tendency for banks to pursue a multidimensional approach that combines different tools, strategies, and technologies simultaneously. This document also offers advice for banks and other mainframe users to consider in relation to their own mainframe modernization strategies. These include the importance of prioritizing the fundamental performance and security features of mainframe platforms and the benefits of understanding how third-party providers can help them with specific modernization objectives. Chris Drake, senior research director, Computing Systems, Platforms, and Technologies practice at IDC, argues, "Banks' mainframe modernization strategies are intended to help them achieve a broad range of business and technology goals. These include reducing the cost and complexity of managing IT environments, increasing IT sustainability, avoiding/mitigating potential cybersecurity risks, and ensuring they comply with various data privacy, residency and compliance requirements." Drake goes on to say, "Given the fast pace of technological change and the intense competitiveness within their own markets, financial service firms should carefully consider whether their current approach to mainframe modernization is adequate. Specific considerations include whether they are refreshing/upgrading frequently enough and whether they fully understand the breadth of third-party support options available to them."