The cloud imperative for the banking industry

Banking models under pressure for radical change

COVID-19 has given new urgency to the cloud banking imperative. In just a matter of weeks, the scalability, resiliency, flexibility and accessibility of the public cloud looked much more appealing as banks sought to manage the uncertainty and switch to a different operating model.

As banking executives assess this potential new landscape, as well as the strong performance of the public cloud over the past few months, a typical conclusion is that it’s time to accelerate their banking enterprise cloud strategy.

Advocacy for the cloud in banking

For cloud evangelists, the public cloud was the answer to the quest for secure, personalized and transparent omnichannel customer experience repositories powered by internal and external data. It enabled self-service, incorporated the best third-party products, was compliant by design, and delivered returns above the cost of capital.

But the skeptics weren’t so sure; they cited security concerns, regulatory ambiguity, potential competition concerns with the largest cloud service providers, and the alluring economics of fully amortized data centers. The debate continues, but the evangelists have gradually gained the upper hand: investments in the cloud have increased sharply in recent years and are expected to remain at 15% per year by 2022.

Multi-cloud suits banks

More than half of our major banking customers have adopted a multi-cloud strategy. We believe this increasingly meets the requirements of most banks. The main advantages include:

Separate the best from the rest

The pandemic has provided an unexpected opportunity to compare the performance of cloud-based technology against legacy technology. Mobiletribe’s experience in helping large banks move their applications to the cloud is that it generally delivers impressive benefits:

Added to this are the often greater benefits of cost variability, business agility, an improved customer experience, and support for both compliance and innovation.

We appreciate your comments on this report. Request an appointment and one of our subject matter experts will contact you to discuss your cloud strategy in more detail.

To learn more about Mobiletribe’s cloud capabilities, read our recent announcement.

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