Digital banking: is it important to use the Cloud?

Recently, the entire world has understood that online security is as crucial as securing your front door, especially since all types of information (financial, personal, etc.) kept on the web is open to a wide range of uses.

For the same reason, several businesses emphasize the need of having a Cloud infrastructure for providing online financial services as a disruptive force in the industry's change.

Why The Cloud is Essential

Customers are already accustomed to the operation of digital banking to be agile and accessible from any device, and this can only be achieved by adopting technologies such as SaaS (Software as a Service) for that reason the adoption of the Cloud fundamental for fintechs, neobanks and startups.?

People today want to be able to do real-time activities such as checking their account status online, making payments, and making rapid transfers, but traditional systems lack the necessary technology.?

Organizations in the financial sector can now have tools that allow them to expand effortlessly and develop new goods and services fast, reducing time to market, thanks to the flexibility given by cloud payments technology.

This friction is reduced thanks to the Cloud, and new apps are built swiftly, enhancing their competitiveness as a growing number of competitors succeed in making the market more dynamic.

Why is Cloud Adoption Now on The Rise?

According to a Capco poll, two out of every five financial services organizations will have an advanced, or completely optimized, cloud data center within two years. According to the consultancy, this projection encompasses banks, capital markets organizations, and insurance corporations all across the world, but it understates the progress being made in the United States, which is well ahead in cloud computing usage.

According to a Capco survey, financial institutions presently operate around one-third of their applications on the cloud. In two years, that figure will have risen to slightly over half.

Banks are "knee-deep in their transformation to digital," according to the research. By 2020, banks had already made significant investments in the cloud. Banks are investing more money in cloud efforts, with the eventual objective of implementing a fully digital environment by 2030.

What are The Advantages?

Leverage data: ?Given the rising significance of its privacy, protection, transparency, and security, allows access to internal, third-party, and other available data, understanding it, and using it to design efficient strategies that drive innovation.

Customer service: Enhances the capacity to provide better services and experiences geared toward the end user, depending on their daily demands in real time.Applications and solutions run on flexible cloud infrastructure such as serverless infrastructure. This allows you to develop a geo-distributed architecture, smoothly distribute the load on servers and control the distribution of service resources.

A Vision for The Future

Factors such as the rise of e-commerce, increased availability of mobile devices, changing demographics and greater use of digital media have contributed to the exponential growth of the sector. This increase reflects consumer trends in digital banking, payments, investments and insurance, where people are looking for simpler, more cost-effective and creative solutions.

Over the past 10 years, cloud services have become increasingly popular. According to a Deloitte analysis published in 2021, "Cloud has become an imperative for banks," the cloud computing sector was worth $58 billion in 2013. In 2018 it reached $130 billion and is projected to reach $317 billion by 2022.

Financial institutions can address core process modernization, which has been on the back burner for years, with cloud infrastructure. Capco believes that while financial institutions, often pushed by the pandemic, have made progress in their cloud journey, most are still three to five years away from achieving their future vision of a fully digital cloud platform. But the future of banking is moving fast and we know we will soon see this become possible.?

What’s your experience with Cloud in digital transformations? Let us know!