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Outdated EUC tools are a growing risk in financial markets
End-User Computing (EUC) tools, like spreadsheets, macros, and desktop databases, were once quick-fix solutions for urgent operational needs. But today, EUCs can be responsible for notable compliance, cost, and operational implications. A recent study found 57% of capital markets firms have suffered compliance breaches due to EUC misuse and up to $12.1 billion is at risk across the world’s top 50 financial institutions due to improper EUC use. And, according to Risk.net, 66% of financial institutions admit that EUCs pose a significant operational risk.
Given these risks, modernizing or replacing EUCs should be an essential part of system modernization. Here are five expert tips to guide your EUC replacement strategy with efficiency, control and minimal disruption.
Tips for successful EUC replacement
1. Map your EUC landscape
Over 94% of business spreadsheets contain errors, yet most organizations lack visibility into where these tools are being used and how critical they are.
Recommendation: Begin with a thorough discovery process to identify and map all existing EUCs, regardless of who built them or where they reside. Use automated scanning tools to locate spreadsheets, scripts and executables across shared drives and personal devices. Go beyond surface-level detection and catalog each EUC based on usage, ownership and business criticality.
Self-declarations and formal reviews can complement scanning but shouldn’t replace it. The goal is to eliminate blind spots before prioritizing replacements. This step sets the foundation for all further action.
2. Replace the riskiest EUCs first using a structured risk approach
Prioritize replacements based on a risk matrix that evaluates each EUC’s impact, complexity, and likelihood of failure. Group similar tools into functional categories, such as reconciliations, pricing models, or trade data collection to streamline remediation. Then apply objective ratings to target high-risk, high-impact EUCs first.
Also consider the feasibility of near-term replacement and whether strategic systems will make certain EUCs obsolete within 12–18 months. This structured prioritization ensures that limited resources are directed to areas with the greatest risk exposure.
3. Align technology choices with business and risk profiles
Disjointed systems slow down product launches and fragment investment and risk views, cited by 47% of firms as a major operational barrier in a recent Gartner survey.
Choose replacement technologies that align with the specific needs of each EUC use case. For low-risk or non-critical workflows, generalist SaaS tools may suffice. For processes involving market data, integration with up- and down-stream systems and other advanced configurability, a platform specialized in financial markets can offer agility alongside governance. While the most complex challenges might require custom development, AI is rapidly expanding what business users can achieve with limited developer support.
Ensure that every tool introduced integrates seamlessly into your digital transformation roadmap and existing change controls. This avoids exacerbating fragmentation and builds long-term operational resilience.
4. Target the root cause instead of rebuilding around broken processes
Legacy infrastructure costs banks up to 10x more in operational overhead compared to modern systems (McKinsey, 2023), yet many replacements simply replicate inefficient processes in new tools.
When replacing EUCs, investigate the root causes that led to their creation, often gaps or limitations in upstream systems. Address these issues directly or extend new solutions beyond the EUC’s original scope to improve workflows.
For example, if multiple spreadsheets perform similar reconciliations, implement a centralized reconciliation engine instead of rebuilding individual tools. Platforms like Genesis offer pre-built functionality that consolidates common use cases, boosting both efficiency and scalability.
5. Prevent EUC proliferation with clear policies, sanctioned solutions and continuous monitoring
Poor governance leads to recurring EUC proliferation. Establish strict policies defining acceptable technologies, processes, and exceptions. Introduce preventative controls, such as blocking .xlsm file uploads to shared drives or using automated alerts to flag unauthorized EUC development.
As the EUC challenge often exceeds central IT’s capacity, it’s essential to enable business users to remediate their own EUCs. Practically speaking, those who rely on these tools daily are best positioned to design their modern replacements. To support this approach, IT should approve technologies that are both compliant and robust, yet accessible to non-engineers.
Regular training and feedback loops improve user adoption of new tools, while periodic reviews ensure policies remain fit for purpose. Ongoing governance is essential to maintain control and compliance.
Remember, not all user-built solutions are critical issues, but almost all solutions have the potential to become a risk if not managed effectively.
Replace your EUCs
Adopt a disciplined, risk-based and business-aligned approach to replace your EUCs and transition to more secure, scalable, and auditable systems. Genesis enables firms to modernize these tactical tools into robust applications quickly and cost-effectively. Get in touch to learn how we can help you replace your EUCs today.
