As our world grows more and more tech-centric and immediate, people are demanding more apps, access and visibility when it comes to finances as well. Top banks will only be able to make this happen by creating a versatile cloud model. Yet despite more and more businesses moving their systems to the cloud every day, the banking sphere is lagging behind when it comes to making a cloud model a reality.
In the next three to five years, this slow transition to the cloud will need to speed up. According to a new report from Accenture, more than two-fifths of bank executives surveyed lacked a strategy for cloud adoption, and only a quarter of firms have cloud-based practices in place.
The reasons cited by bank executives for the delayed cloud migration, moreover, are no different than the challenges most businesses have faced — and overcome — in moving to cloud systems. First of all, many banks still rely on key legacy systems that are apparently too hard to migrate. In addition, there is concern about a skills gap when it comes to cloud management. Both of these problems are issues faced by any business adopting new technology and are a (workable) part of adapting.
Security is another roadblock holding banks back in cloud development. External regulations have left banks five-to-10 years behind in cloud adoption. Most of these issues have now been resolved by cloud providers, but security concerns still remain for many institutions.While banks’ security concerns in switching to the cloud are legitimate, attacks can be prevented with proper security. In addition, what many bank executives don’t understand is that cloud vendors don’t keep data in the cloud. In short, with proper care, the cloud is actually a very secure option.
Banks will soon have to come to the realization that putting information in the cloud will in fact drive growth by providing customers with an outstanding digital experience. In any case, three key elements will soon make banks’ adaptation to the cloud necessary whether they like it or not:
The assimilation of AI
- Banking technology is highly influenced by AI tools, especially in areas such as fraud and risk management, marketing and service delivery. With the increasing data needed for AI, cloud computing will become a necessity for banks.
The platformification of banking
- Financial institutions will be required to apply cloud systems if they want to grow and benefit from implementing fintech partnerships and platform strategies.
- Banks will be spending large amounts of money on IT expenditures, a pressure that could also be alleviated by adopting more cost-efficient cloud computing methods.
Although banks have taken their time in creating cloud models, the cloud is fundamental to how banks will do business and grow in the future.
At MDL Technology, your company’s security is our number one concern. Our cloud computing services include serves, backups, storage, networking and software applications over the internet while being highly securable. Learn more about the services we offer by visiting our website: https://bit.ly/2ef2lbF.