Cloud computing is becoming increasingly important to CIOs, C-suite executives, and board members. Banks and other financial services firms are fast recognizing that the cloud is more than a technology; it is a location where they can store data and applications while also having access to innovative software applications over the internet.
Leading public cloud providers provide a variety of innovative Goods-as-a-Service that banks may utilize to raise revenue, improve customer insights, minimize costs, rapidly and effectively produce market-relevant products, and monetize corporate data assets. The cloud also has the ability to synchronize the company by bridging operational and data silos in risk, finance, regulation, customer service, and other areas. The organization may utilize sophisticated analytics to acquire integrated insights after merging massive data sources in one spot.
For years, bank executives have focused on the cloud’s value as a less expensive, faster, and more “elastic” alternative to on-premise data storage. Now, they’re thinking about how they can use it in three areas “above the line” to open up new business frontiers and three areas “below the line” to streamline operations. By integrating cloud technology in these six areas, banks may be able to improve their corporate performance and shareholder returns.
Planning and implementing cloud solutions
Business case development
The cloud is becoming an engine for rapidly generating new capabilities and services to satisfy business objectives, in addition to aiding with IT strategy innovation. Many disruptive ideas already exist on the cloud; they’re just not widely known. A cloud business case should show how the bank can leverage cloud-based solutions to provide customer insights, experiences, and services, as well as increase revenue, save costs, find and onboard better employees, and provide more consistent corporate operating platforms. It should also include a baseline cloud value assessment model, which will aid scenario planners in mapping the economics of changing market dynamics, pricing, and business assumptions.
Solution design and execution
The cost and labor of shifting workloads to the cloud may be a major problem for financial businesses adopting cloud solutions. Cost and time to market are significant concerns when adopting business-building technologies like advanced data analytics and machine learning. When opposed to developing capabilities in-house, external cloud providers provide specific features that can save time during development.
Vendor management
The banking industry will be shifting to hybrid and multi-cloud systems for years to come. Over the course of this time, vendors are expected to release new cloud-based services and capabilities on a regular basis. Financial services companies should avoid vendor lock-in in order to adapt to changing market conditions without having to re-platform when moving providers. In addition, as vendors mature, they may be able to offer better pricing flexibility by leveraging different cloud platforms that allow an organization to move workloads from one cloud to another to meet business needs and apply best practices developed on one cloud platform to departments using different cloud vendors.
Security
Data security is a concern for bank executives. Understanding the cloud requires considering how an organization’s current infrastructure and capabilities may be limiting its ability to anticipate and manage developing risks and vulnerabilities—and how cloud technology may assist. Security in the cloud differs due to the tools unique to each cloud provider’s environment and the fact that cloud providers frequently assume responsibility for the security of lower-level infrastructure layers. Because cloud providers and the clients they host share security obligations, how companies anticipate and prepare for security risks is influenced.
Regulatory compliance
In an industry where cross-border transactions are widespread, cloud computing can assist banks and financial services organizations to deal with ever-changing regulatory reporting requirements across several operating nations. Banks might also use cloud-based systems to determine intraday liquidity and risk, as well as examine trade surveillance data for anti-money laundering and other fraud concerns. Data brokering placement capabilities are enabled by a cloud platform based on data criticality and Certified Safety Professional certifications.