According to experts, many legacy banks and traditional financial institutes are looking for solutions to uphold new regulatory demands for:
- Enhanced transparency
- Higher capital requirements,
- Customer treatment
- Shareholder pressure for faster growth
- Higher margins
In response to these new issues, many companies are turning to the cloud, to revamp the way they operate and to totally restructure and transform the way they work.
This includes innovations on their products and services, and also including the ever-important customer journey and experience. Many banks are looking to utilize the power of the hybrid cloud, employing it as a business asset to transform the company and forward digital change.
A recent survey carried out by the Cloud Security Alliance shows the financial services sector is currently in search of a cloud strategy.
Historically, banks and insurance firms have been slow to see to the benefits of cloud computing more so, say, than manufacturers and retailers. However, today, the tide is turning.
“According to a recent survey from the Cloud Security Alliance, the financial services sector is currently in search of a cloud strategy.”
Private cloud services
Private cloud services have so far dominated the services banks have developed. The adoption of a hybrid cloud strategy has not surprisingly, been slow. This is chiefly lead by security concerns and a perceived loss of data control.
However, banks are now catching up and moving towards the benefits hybrid clouds can offer. A recent report from Nutanix, a supplier of enterprise cloud solutions, discovered the financial sector outpaces other industries in the adoption of hybrid cloud.
Demonstrating that the deployment of hybrid cloud reaching 21% penetration today, compared to the global average of 18.5%.
“A report from Nutanix, a supplier of enterprise cloud solutions discovered the financial sector outpaces other industries in the adoption of hybrid cloud.”
Integration with legacy systems
Deltec Bank said, “Many banks and insurance firms continue to rely on legacy systems based on their premises that have been in use for a number of years. These kinds of systems can be very costly and more importantly, sometimes not feasible to seamlessly migrate over to hybrid cloud systems.”
A hybrid deployment model allows financial institutions and more traditional legacy banks to maintain and support legacy systems alongside cloud-enabled ones. This helps them to retain older technology, but run both systems alongside each other without committing to additional data center development.
“A hybrid deployment model allows financial institutions and more traditional legacy banks to maintain and support legacy systems alongside cloud-enabled ones.”
Finally, the scalability offered by the cloud can also help the financial services sector to innovate more effectively, rolling out new products and services in a fraction of the time it would have taken previously.
Public clouds can be used as low cost and quick to set in motion, testing environments. This enables IT teams the ability to develop new solutions in an agile and responsive way.
When these solutions go live, they can be moved to on-premise or private cloud infrastructure and therefore meet the important criteria and needs surrounding security, compliance, and availability.
According to Deltec Bank, “It seems the finance industry deserves the proverbial pat on the back for at least being ahead of the curve when it comes to new innovations like the hybrid-enabled systems.” But perhaps we should be ahead, as we’re driven ever towards improved systems by the demand from customers… and when the ferocity and pace in the market place demand it.
Disclaimer: The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.
About Deltec Bank
Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.