The archetypal image of a banker is a man in a dark suit working in a fusty, austere institution. As an industry, banking has never held a reputation for being particularly innovative when it comes to technology, and the consequences of these sluggish impulses were spelled out very clearly at a recent SAP services conference. CEO of Fidor Bank, Matthias Kroener, warned his fellow professionals that customers are actively looking for new digital services. He pointed out that younger and more dynamic financial companies are leaving traditional banks for dust, and taking their customers with them.
Nor is Kroener alone in urging banks to push ahead with replacing legacy IT systems with more modern and agile infrastructures. As such discussions around cloud are moving up the IT agenda, as it offers banks a way to reduce costs and increase business agility. As banking becomes an increasingly digital phenomenon with customers firmly in the driving seat, there is no question that traditional banks must invest in IT infrastructure that is agile enough to allow them to compete with more dynamic, tech-savvy competitors.
Of course, migrating to the Cloud can present a range of challenges and security remains a big concern for many banks. However, to simply stand still isn’t an option. Considering a hybrid cloud model that allows for incremental shifting of some workloads to the Cloud, can help to allay security fears and offers a realistic, achievable technology roadmap for banks. With would-be rivals looking to take banks market share, it’s crucial to maximise every advantage and minimise weaknesses.
While legacy IT systems are currently a weakness, new cloud solutions can be partnered with the largest advantage that banks have over competitors – their institutional knowledge – to achieve an advantage. Banks can implement new technology solutions to replace their legacy systems, but competitors cannot match the extensive financial experience that banking institutions have – that kind of knowledge is something that money can’t buy.
At Trustmarque, we work with a range of financial organisations and banks, helping consult on, architect and implement secure cloud solutions. For some organisations, cloud already seems ubiquitous and familiar; for others, like many banks, it is still new and to be explored. Wherever you are on your cloud journey, Trustmarque has the knowledge and the tools to help. You can get in touch here.