A clear strategy is a prerequisite for cloud computing in banking, to scale up business and drive efficiency.
Nothing has gained so much more important in the last two years, than virtual architectures. Pandemic has put our traditional beliefs of safety and efficiency to the test and in the process enabled us to develop more robust systems. Cloud computing in banking is one area, which has come into focus recently. Earlier, banking magnets would dismiss it as an impossible phenomenon. Now, with advancements in cloud technologies, they are rather working on how to implement cloud computing in banking than looking for excuses for implementation. Banking has emerged as the aggressive and the largest adopter of cloud accounting for 16% of total cloud expenditure. By reducing time spent on provisioning, developing, and implementing digital banking solutions, Cloud technologies help staff focus on core competencies.
Given the robustness of banking operations, it is quite important to keep the primary goals in sight. Be it scaling up the business, bypassing traditional technologies, or driving efficiency, a clear strategy is a prerequisite for cloud computing in banking. Hybrid cloud is one step in this direction that allows selective transfer of banking operations by leveraging the scaling capabilities of public cloud as well as privacy features of private cloud. A survey held in 2020 by IDC, states that 89% of banks operate or plan to operate with hybrid cloud storage. In this context choosing the right deployment model is quite significant to incorporate features such as price flexibility, market adaptability, system scalability, contextual variability, and ecosystem connectivity through banking cloud architecture.
Parameters to choose the right cloud architecture
Financial institutions come in different sizes and all may not have similar cloud requirements. Choosing a cloud just based on the size wouldn’t work either. Consider parameters such as transaction volume and processing capacity before taking the leap into cloud banking. For the business to expand, the cloud needs to be scalable and have data centers across the globe. In a dynamic banking environment, regulations evolve continuously. Choosing the right partner would go a long way in serving the clientele better as cloud technologies are complex and demand cloud management capabilities.