If you were to pull out your digital banking crystal ball for a look into the future, you may not be surprised by what you see. Banks and credit unions will be doing business in the cloud.
This shouldn’t be surprising since 40 percent of respondents to a recent Accenture survey said they believe cloud-based technologies generate business value for their industry right now. Yet most of these banks are just beginning to experiment with cloud infrastructure – only 26 percent of those banks are already measuring success from their core cloud practices and tools. 31 percent have their practices in place, and 40 percent are planning and have begun implementation of cloud-based tools.
Although some financial institutions (FIs) are slow to change, the digital banking world is headed for the cloud. Banks and credit unions who haven’t gotten on board risk trailing their future-focused peers. Below, we’ll explore what to consider when you’re looking to partner with digital banking providers on the cloud, specifically Amazon Web Services (AWS). We’ll also explain what FIs who are ready for AWS stand to gain.
Though most banks are dipping their toes into what cloud offers, there are still some hold outs. While some of this apprehension can be attributed to a need for resources, other FIs simply have cold feet.
Security concerns top the list of reasons why FIs hesitate to go all in on AWS. This misconception comes from high-profile cases of organizations on AWS experiencing security breaches, though these cloud data leaks are consistently attributed to user error.
Some fears exist around the transition to AWS, though the impact to banks and credit unions will be minimal. FIs concerned with growing pains need only ensure that their third-party services can adapt to AWS. For the most seamless transition, however, conduct code-level assessments to ensure your target platform is the right fit.
Wariness to embrace cloud hosting exists despite the possibility of innovation that AWS provides. In the past, FIs have had to compromise innovation for availability when they explored options for innovation. But, with AWS, FIs can enhance features, security, and UX while improving uptime, performance, and quality.
We recently converted 100 percent of our users to AWS, and we’re already seeing benefits. After implementing our strategy to achieve maximum innovation with maximum availability, we’ve experienced these improvements:
AWS supports maximum availability and provides industry-leading security for FIs. But only a third of banks have a strategy for cloud modernization for their applications.
And only 31 percent of banks know what’s needed to develop cloud-native applications.
FIs can’t get to the cloud alone. They’ll need a digital banking platform provider to take them into the future.
