Many retail banks are gradually migrating to the cloud to provide less risky services. However, many chief technology officers in various financial institutions were uninterested in cloud technology in the past. Because of the perceived complexity or privacy issues, this is the case. Though only a few people have embraced cloud computing, it is gradually gaining traction.
According to the latest Fenergo study of global banks and asset management organizations, cloud technology is the top priority for over two-thirds and 56% of senior decision-makers, respectively. This could be a good sign for the technology’s power.
The majority of CIOs support digital banking while also being concerned about data security. These developments are undoubtedly the result of leaders’ grasp of the benefits of cloud technology and its security, which has eliminated past concerns about data privacy and data identity management.
The rise of digital banks and client expectations has had a significant impact on financial services and institutions’ decision-making to adapt to the trend. Even while key firms are just following the market to stay afloat, it is becoming less of a topic of discussion because the priority is to adapt to cloud technology to provide better services.
To be more explicit, the institutions’ adoption of cloud-based systems and solutions is also significant. This isn’t only about transferring workloads to the public cloud that don’t have any privacy or compliance concerns, but also about being more sensitive to data in a hybrid approach than in previous models.
Cloud technology is slowly but steadily taking over the financial services industry, from front-office consumer experiences to regulatory compliance systems required to onboard clients, conduct checks, detect issues of financial crime, and so on.
However, making the transition from old technology to cloud technology is not easy, and financial services CIOs will undoubtedly have other competing concerns. Sometimes without the funding or resources to handle them all at the same time. They must consider how technology can improve the system, what opportunities it provides, and what risks it mitigates at this moment. For a better transformation approach, these issues must be answered.
Regulatory compliance technologies, such as customer lifecycle management systems, should be near the top of the list after the foundations for a cloud strategy have been laid. This can assist mitigate risk while also removing a lot of burdens that clients may encounter during the onboarding process when using manual techniques.
CIOs look to their technology partners for guidance in making the best decisions for their companies. As a result, the scope of cloud technology utilized by most institutions will expand in the coming days, lowering fraudulent activities.