Cloud first strategy is no longer a pipe dream, but a reality. Banks are still coming around to the idea that with the digital disruption of business models, the new open ecosystem will be banking on the cloud. Cloud will be the biggest driver for technologies that are currently changing the face of business – – blockchain, artificial intelligence (AI), open APIs, server – less computing, IoT etc. Progressive banks will move beyond non-mission-critical systems on cloud to supporting production workloads on the cloud.
In the past year, there has been a huge push towards cloud, and now, by design new infrastructure and applications are launched cloud first. Most public cloud vendors have become more compliance centric, which has ebbed some of the distrust that the financial service industry had against public cloud. In 2017, banks will be looking to re-design and not just re-deploy their applications, while moving to the cloud and provide a platform for innovation. There will be hybrid cloud models that banks will be relying on to carry out their business – peak-load processing will be handled with ‘cloud-bursts’, whereas routine operations will still continue to be processed in-house.
Banks will see a reduction in capital and operational expenses, that will be driven by the pay-as-you-go model for cloud. The other area that banks will begin to see a marked difference in, will be in implementation; application implementation cost and efforts will be driven down by a sizable margin as banks will be able to leverage new innovations from the shared ecosystem. The day is not far when banks will transform into platform providers that will provide APIs to third party developers to create applications to deliver great value for consumers. This partnership will not only create delightful experiences for the end-user, but will also drive the bottom line revenue for all the partners in the ecosystem. Banks that create a well-planned strategy to move into the cloud, with a long-term vision to be truly-digital, will be poised to become the leaders in this disruptive environment.Tags: Banking, banking innovation, Cloud, technology innovation, Trends in banking