Cloud-based core: the future of banking?
TechInformed
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Financial institutions are adopting cloud-based cores to overcome the competitive financial landscape. But do the benefits outweigh the risks? Fred Fuller asks
In 2024, financial institutions are under more pressure than ever to evolve. Consumers have grown accustomed to a smooth and frictionless omnichannel experience, with features like Apple’s Face ID making it possible to bank online without inputting a password.
This works alongside wider solutions implemented by future-facing banks, with the objective of improving customer experience and strengthening security. Indeed, Endava’s recent Retail Banking Report 2024 found that 46% of US respondents, and 44% in Europe, had already experienced the benefits of a cloud-based core for their FI.
While nervousness around implementation is understandable, with the core underpinning key functions of the bank, the proven benefits of adoption increasingly outweigh the risks.
Benefits of a cloud-based core