New Delhi, July 7 -- Nearly 90 per cent of European banks say they face an urgent need to modernise their payments infrastructure, but most are making slow progress due to fragmented legacy systems, regulatory complexity, funding constraints and talent shortages, according to a report by Boston Consulting Group (BCG).

The report said the payments business is becoming increasingly critical as competition from fintech firms, big technology companies and payment service providers intensifies, while new regulations and rising customer expectations require banks to upgrade their technology platforms.

"Many banks tell us their modernization programs are making slow progress, amid fragmented legacy systems, regulatory complexity, skills gaps i...