Cloud adoption and its role in modern-day banking

Why must banks make the transition to cloud?

$77 million spend on cloud products and services. This is the staggering amount banks are expected to spend each year till 2024. 

Ever wondered why banks and other financial institutions feel the need to transmute into faster and more flexible organizations? 

Because the advent of digitalization has left banks with no option other than to automate and reinvent their traditional processes.  

Cloud banking is emerging as a robust delivery model that is transforming core banking services across all industry verticals. Now, with the power of cloud computing, banking institutions can readily access their platforms and applications around the clock.  

This blog highlights how cloud adoption is enabling banks to leverage IT modernization and accelerate their digital initiatives.  

How are banks turning the tide with cloud adoption?  

By minimizing costs  

Conventional banking is not here to stay long. With the banking customer going digital with every passing day, banks are constantly transforming their services, delivery models, and how they approach the modern-day customer.  

Experts at IDC believe that 25% of business leaders believe cloud adoption offers great cost competitiveness for their IT budget. By shifting to a cloud-connected platform, banks no longer have to spend tons of revenue on installing and maintaining on-premises IT hardware. This way, they can take advantage of data centers provided by cloud service providers and cut down expenditure costs incurred by your bank.  

Experts at IDC revealed that 25% of business leaders believed that the greatest benefit of cloud adoption was the reduced IT budget. 

Through enhanced operations 

Apart from feasible pricing and cost control, cloud adoption also connects your bank’s operations by bringing agility and efficient resource utilization to the table.  

35% of the bankers saw improved agility and resiliency as the greatest benefit received from cloud adoption.   

A feature-rich cloud solution optimizes the infrastructure of your bank, enhances its agility to adjust to the continuously evolving market demand, and allows it to effectively allocate essential resources and accelerate cross-organizational collaboration.  

With personalized customer experience  

As per a Mckinsey report, 75% of the cloud’s predicted value comes from its ability to help drive innovation in an organization.  

The cloud-supported infrastructure yields a more scalable, and flexible data system for your bank, enabling you to innovate and rapidly deliver products and services to customers when compared to other market players. Hence, propelling personalized customer experiences that are closer to your customer.  

The future of banking is digital 

After a decade of steady cloud growth, banks are rushing towards cloud migration to help with the influx of customer data and time-to-market expectations. Banks around the globe are shifting from subpar legacy applications to cloud-based solutions that help better meet digital initiatives. Cloud banking has become inevitable not only for the obvious gains of cost reduction, and operational efficiency, but also to connect and serve the digital customer better.  

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