A recent blog post by Accenture’s Sulabh Agarwal, Managing Director of Payments: UK & Ireland has highlighted three key reasons why the banking of the future will be conducted on cloud infrastructure.
In the post, Agarwal states that the transition towards cloud computing has already started, with many banks already using cloud-native platforms such as Salesforce and Microsoft Dynamics, and then moved to other solutions such as SuccessFactors and Workday.
Agarwal states that the next steps to move towards cloud computing is clear. “Now the scene is set for banks’ third wave of cloud migration: in their core applications and processes. For many banks, payments are top of the list for ‘cloudification.'”
The three reasons why banks will migrate towards cloud computing for their requirements were classified as follows: payments & infrastructure, resilience and stability, and agility.
Agarwal stated that banks are now in “imminent need” to upgrade their payment infrastructure, with UK’s ISO 20022 standard being the lead factor that intends to standardize the method of how payments are made throughout the world.
In terms of resilience, cloud computing enables banks to scale and keep their services online even despite heavy traffic, said Agarwal. The prominence of several high-profile hacks has also addressed the need to focus on security, which keeps platforms distributed over several servers instead of being centralized into a handful of locations.
The final reason, agility, will reportedly allow banks to “respond in agile ways to market disruptions and drive continuous improvement.”
In terms of when such a shift to cloud computing will take banks, Agarwal stated that companies can start now, or wait until industry discontinuity makes it “imperative.”
Aaron has been reporting on financial markets for more than 6 years. He now spends his time contributing to PriceAnalyses and studying geography. Contact: firstname.lastname@example.org.