Benefits and challenges of Cloud Computing implementation in the banking sector

01 Jun 2022

Cloud computing is capable of accelerating innovation and the transformation of companies, including those in the banking sector. This cloud-based technology (instead of its own physical servers) stands out for its low costs, as well as for the speed, agility, and security it offers to banks. It opens up a wider world of possibilities for innovation in banking, but it is necessary to know in which specific areas it can have an impact and what its main challenges are.

Benefits of the Cloud for the banking sector

The use of cloud computing can help banks in several ways:

• Increasing efficiency in operational processes.
• Creating secure applications that meet regulatory requirements.
• Improving customer services and products.
• Reducing barriers to entry into new business models by having greater flexibility. It is no longer necessary to have a series of machines to start developing, but it is enough to contract it to a Cloud provider.
• More facilities for Mobile First.
• Improving Time to Market by gaining speed and agility.

These benefits are important and relevant because it is expected for global investment in Cloud Computing to exceed 1.12 trillion euros by 2025. But what are the challenges of this technology?

Challenges to Cloud implementation

Although there are many benefits, the incorporation of cloud computing can bring with it some challenges for banks:

• First of all, it will be essential to continue to maintain the digital and personalised experience without service interruption.
• In addition, banks tend to have a long track record. This means that they have significant legacy technology, so adapting this traditional IT to a new hybrid ecosystem is a major challenge.
• On the other hand, it will be important to choose the best platform and the right technology partner to carry out a Cloud transformation and implementation project.
• A migration strategy linked to the specific needs of the banking business (and of each institution in particular) must also be perfectly defined.
• Finally, efficiency in hybrid environments must be guaranteed, risks must be reduced and compliance with SLAs (Service Level Agreements) must be ensured.

How do we help customers in the banking sector to move to the Cloud?

At VASS we are already working to facilitate this migration to our customers. To do so, we always start with the analysis and design of an adoption roadmap, which continues with the execution and management of the Cloud ecosystem. It is important to bear in mind that shifting to Cloud implies a change in the organization of the bank, in the operation of the infrastructures, and in the way new products and services are developed. To this end, we rely on different Cloud solutions (Data & Analytics, IoT, AI, Cloud Hub, etc.) and on a specific strategy, development, and management methodology. But, above all, we offer flexibility in services, combining proofs of concept with the development of the digital strategy, training workshops, or strategies for change management. All this is to obtain the greatest value and increase the competitiveness of clients in the banking sector by incorporating Cloud Computing solutions.