Unlocking modern–day banking with cloud computing

The world is moving towards a cloudy future, and banks are not ready to stay behind. 

Banks plan on spending as much as $77 million on cloud products and services by the end of 2024. With many digitization options offered, business leaders are constantly inclined toward cloud computing and the capabilities it offers for accelerated growth.  

But are banks still totally confident to migrate their legacy systems to something oddly interesting for them like the cloud?  

Understanding this requires us to consider certain complications banks face as financial service providers including stringent compliance requirements, securing sensitive customer data, and deciding whether to outsource or not critical banking processes.  

On the brighter side, cloud service offers massive improvements in operational agility, cost control, and not to mention the much-needed data security protocols as well.  

In this blog, we break down how banks are transforming in the face of digital disruption with cloud-based services, cloud modernization trends, and how they are setting the precedent for today’s modern-day banking.  

What is cloud banking?  

Cloud banking is a type of deployment and delivery model through which your banking services are offered through the cloud. It allows you to create a connected ecosystem of core banking functionalities that can be accessed from anywhere with minimal effort, without needing any actual physical servers on your premises.  

How are banks modernizing today? 

Ever thought about what banks need to transform into big yet nimble organizations at the same time?  

With the advent of digitization, banks need to constantly re-innovate which involves automating and reinventing their old-school practices, leading to a chain of banking modernization.  

Cloud computing has become a banking industry imperative. This is because cloud delivery models allow banks to effectively meet customer expectations giving them a competitive edge to compete in today’s fierce market competition. Here are some technologies and practices banks have adopted to serve the tech-savvy customers of today.  

• Robotic Process Automation  

RPA or Robotic Process Automation is the use of automated robotic software to engage customers at a finer level of personalization. At the same time, it adds productivity and efficiency to the whole banking journey by switching cumbersome tasks with innovations like self-servicing, and 24/7 automated CS support. 

• Blockchain  

Blockchain technology has been around for years, until now when banks have actually realized their true value. While playing its role as a key contributor to the financial revolution, it is improving transactional transparency, alongside cutting through the endless layers of the traditional banking process. In this regard, PwC experts have found that banks can save a staggering $ 15 to 20 billion in 2022 if they switch to blockchain-enabled infrastructure.   

• Open Banking   

Many of us don’t even know how open banking is facilitating us daily. If you’re submitting your utility bill through a mobile banking application, booking a ticket for your destination tour, or even paying up for a meal at a restaurant.  All these are examples of open banking which is possible through a chain of banking entities and their business partners providing services through digital payment gateways.  

Perks of Cloud banking  

After years and years of achieving tangible results from digital technology, banks are experiencing a transitionary phase where they are focusing on the ‘how’ to cloud banking. In search of better alternatives to replace their subpar legacy systems, banks are waiting no more. Here are five ways cloud banking is transforming the industry across the board: 

• Effective cross-organizational collaboration  
• Cross-connected and synchronized business units  
• Comprehensive cost control options  
• Resilient data centres to safeguard sensitive PII  
• Technology innovation for products and services 

Tip-toeing towards a cloudy future  

With years of steady cloud growth, banks are now turning the tide by adopting the cloud switch. Rapid time-to-market and the ever-evolving customer expectations have also played their part in making banks the agile financial organizations of today. That being said, cloud banking has become a modern-day necessity, not just for the apparent cost savings and operational efficiency it provides, but also to better connect and service the digital consumer.  

Interested in modernizing your banking infrastructure on the cloud? Systems Limited provides you with next-gen cloud services that help you realize the true meaning of cloud banking. Get in touch with us today.