Technology is playing an increasingly important role in banking. Efforts to move sensitive data and transactions to the cloud are rapidly eroding.
FREMONT, CA: The use of technology in banking has reached a pivotal point. Recent years have seen a decline in resistance to moving sensitive data and transactions to the cloud. Even though the transition to the cloud won't happen overnight, it is widely agreed that cloud computing is necessary for banking's competitive future.
A Rapidly Changing Banking Industry
Moving from closed systems to ecosystems: By offering third-party offerings through their channels and offering their products and services through the channels of other providers, market participants offer their products and services.
Shifting to embedded service: Rather than offering credit options after the point of sale, some banks offer credit products at the time of the search.
Bye-bye batch, hello real-time: Customers and relationship managers benefit from real-time data acquisition and automatic updates.
Not just reporting, advanced analytics: It is becoming increasingly intelligent and personalized to select products and deliver services.
Embracing a zero-trust security model: Encrypting data in transit and at rest, implementing multi-factor authentication, monitoring access, and tokenizing data are all necessary.
Truly personalized offerings: Small changes in credit product features, as well as completely new offerings, for example, are becoming more important to customers.
Cloud banking is not just about it
Analysts often advise financial institutions considering cloud conversion to keep in mind that it can be a technology endeavor and a cultural and operations shift.
Accenture notes that banks that are most successful in harnessing the benefits of the cloud, such as increased agility and speed, and lower costs, involve all lines of business, align organizational talent behind the cloud, and ensure business and IT are on the same page.
The consulting firm notes that cloud initiatives begin with defining the advantages of technology transformation in terms of new capabilities, cost efficiency, or risk mitigation.
