How to improve business agility through the cloud in the banking industry
The cloud is transforming organizations
Banks are facing a pressing need to develop and transform into fast-moving organizations, due to the future demands of more business agility. To achieve this, cloud technology is essential.
Cloud is growing fast
Banking is undergoing profound changes as it faces many challenges: new market entrants and Big Tech making inroads into the market, open data initiatives, margin pressures and more challenges.
The changes and challenges are rising a new vision for banking—one grounded in real-time decision making, diminished friction, personalized products, and customer experiences that statisfy and drive growth. To deliver on this new vision, banks not only need to move faster, they also have to be more agile. Cloud technology will play a pivotal part.
In the Netherlands, we see banks all having the ambition to be more customer centric and at the same time, they are closing many of the branches. To provide their customers a better experience in that situation they are going through a digital transformation. This means they need to make better use of data and of technologies as AI, they need to respond almost instantly to their customer’s behavior which needs that they become agile and want to deploy delivery methods as DevOps. They want to share data and services with other parties in their eco-system to better service their customers. And they want to scale their business as soon as they like. All this is only possible if Cloud technology are used and therefore we see all banks and financial institution in the Netherlands now evaluating their Cloud strategies.
Cloud is known to be the foundation for greater business agility and continuous evolution. It enables banks to respond immediately to changing conditions, better leverage data, and achieve exponential productivity benefit. Embracing cloud today will be key to staying competitive tomorrow.
In 2013, the cloud market was €52,5 billion. By 2020 it’s expected to reach €145 billion.
The finance cloud market is estimated to grow from €9 billion in 2016 to €26,7 billion in 2021.
Customer agility and cloud
Cloud helps organizations move quickly to respond to changes in customer demand before the competition does, by powering smaller, faster, more iterative releases—significantly improving speed to market. Banks can get new products into market rapidly, deliver great customer experiences, and unlock new revenue streams.
Partnership agility and cloud
Cloud makes data exchange easier, enabling banks to quickly set up new partnerships and grant data access to trusted third parties. These cloud-based ecosystems enable connected organizations to rapidly build on each other’s innovations and accelerate the pace of change.
Data agility and cloud
Today’s huge data sets are only truly manageable over cloud—and cloud providers’ investments in built-in AI and machine learning mean banks can significantly accelerate insight generation that delivers profitable growth, detects potential fraud, and more.
Asset agility and cloud
Cloud enables banks to scale their technology infrastructure needs up or down as needed to handle fluctuating demands—eliminating the need for costly investments and system upgrades. Cloud’s modular applications turn fixed costs into variable expenses, allowing underused capital to be used for more productive ends.
Eager to leverage cloud to improve your organization’s business agility? Here are some high-level key considerations:
- Master your current cloud maturity.
- It is time to invest big.
- The business needs to take the lead with cloud.
- Change the way your organization changes.
- Rework your talent model.
- Don’t build solutions. Assemble them.
Download the report to read these considerations in detail.
Banking’s future is in the cloud. Cloud will enable banks to move past old technology constraints, increase their business agility—and get back to the business of banking. The investment required is considerable—and so is the opportunity. Embracing cloud today will ensure you can compete and thrive tomorrow.