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Exploring the Increase in Cloud Migration Cases in Corporate Banking Did You Know?

The impact of the public cloud on retail banking is now clear to all of us. As conventional technology, the cloud enables major initiatives such as digital, mobile and customer analytics. Exploring the rise in cloud migration cases in corporate banking.

In the corporate banking segment, the pace of cloud adoption and migration has been slower. Among the main forces impeding the transformation and shift to the cloud are the security and compliance concerns.

Currently, the approach of this type of banking towards innovative technologies and cloud computing it is changing. While on-premises facilities may remain the preferred location, the business case for evaluating and making the move to the cloud is increasingly clear.

Exploring the Rise of Cloud Migration Cases in Corporate Banking

Banks are looking to the cloud for agility, innovation, ways to free up budgets and move away from capital expenditures. What’s more they are also looking to keep up with customer expectations for digital engagement.

Findings from the inaugural survey of the public cloud in corporate banking from Celent highlights ambitions and strategies banks for public cloud adoption. The The results reveal the changing approach that corporate banks are adopting to the cloud and the trends that are likely to continue.

Driving corporate banks’ cloud migrations

Although previous discussions of moving to the cloud may have been anchored in the possibility of cost savings, many other drivers are behind the current interest. The business benefits are clear to the business and IT divisions of a financial institution. The main drivers are a greater agility, which helps accelerate development and innovation. Also the ability to spend a higher percentage of the IT budget on innovation.

Exploring the Rise of Cloud Migration Cases in Corporate Banking

Other drivers (cited by 50% of respondents) include the flexibility provided by moving from CapEx to OpEx and the best customer experience. He too improved compliance compared to internally managed systems. In addition also adds a cimproved ability to partner in the fintech ecosystem.

During the past year, COVID-19 provided an additional boost. He emphasized the need to improve customer engagement and overall customer experience. Half of those surveyed indicate plans to move more workloads to the public cloud in response to the pandemic.

Going beyond the barriers

Many respondents (63%) they mentioned two well-known concerns: security and compliance, as practical barriers to implementing cloud initiatives.

However, the perceptions around safety are encouraging: 90% disagreed with the statement that “cloud technologies are not secure enough for banking workloads “. Half believe that the cloud can help improve cybersecurity.

Exploring the Rise of Cloud Migration Cases in Corporate Banking

Other concerns, perhaps less frequently discussed, such as Lack of internal experience and alignment are also considered barriers.

To assess how to move forward appropriately, collaborative decisions provide significant value. Clearly, caution is warranted when making decisions about technology architecture. This is especially the case when it comes to customer-facing applications and confidential financial details.

Strategy status

Corporate banks tend to be conservative in its approach to migration to the public cloud. Only 20% will embark on a broad migration. In contrast, in corporate banking, systems that are not customer-facing will migrate to the cloud selectively, as reported by 70%. Central transaction platforms and customer data will remain on the premises.

Although these systems may remain on the premises for the short term, most banks are operating in hybrid multi-cloud deployment environments. They use a combination of the local private cloud and the public cloud.

Three out of five respondents feel that their enterprise cloud strategy is clearly articulated. A minority (one in five) report that each line of business is following a cloud strategy independently. Most corporate banks (80%) are working with vendor partners to support their cloud plans. Almost 90% use a third-party company to help with strategy implementation or ongoing cloud management.

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