Many “Might-have-been” opportunities would have been flown away just because the leader waited a little longer. The secret to business success is for a leader to be ready for their chance when it knocks the first time, and Banking is not immune to this. You might think that making a decision fast is easier said than done in highly regulated industries like finance. “Yes,” it’s true, and we couldn’t agree more if you still stick with on-premises legacy systems. However, a modern problem needs modern solutions, and modern solutions demand modern tools. Fighting with one hand Leveraging cloud infrastructure to shift applications from on-premises brings significant benefits with cost and scalability but stopping there is fighting the war with one hand, your non-dominant hand. The pandemic accelerated financial services organizations’ cloud adoption of productivity tools like email, messaging, and office suite. Then they moved to point solutions for specific banking applications, such as fraud detection. It’s time to move to holistic cross-service model banking solutions that support core banking and other mission-critical applications. Be native to move fast To achieve business velocity and increase the rate of innovation, organizations in the finance industry need to adopt a cloud-native approach to building and delivering solutions. Refer to our blog to understand how an existing legacy core banking system can be broken down into a discrete service that can be independently built, deployed, scaled, and maintained, yielding the following benefits and limitless possibilities. Increased time to market Stronger Security & Compliance Cost Optimization Increased Time to Market By design, legacy banking systems evolve slowly, and lengthy development and release cycles make it hard to support frequent changes. Empowering them with cloud-native services and re-usable components makes the system more agile. As a result, new features can be built and released to market more frequently. In addition, increased time to market provides a competitive advantage. New ideas can turn into code, and the code-to-cloud journey could happen in a matter of days, and also, leveraging the vertical cloud offerings, new features can go to market in a few hours. Stronger Security & Compliance Being compliant is the primary concern of the organizations operating in regulated industries, and cloud providers understand this obligation well. Hence, they offer simplified native services for seamless data security and compliance. In combination with automatic data analytics and artificial intelligence, a cloud monitoring system can detect and prevent malicious activities in near real-time. In addition, industry-specific cloud-native offerings address compliance out-of-the-cloud. So it’s manageable for banks to maintain compliance with new data storage, processing, and usage regulations and they can work closely with regulators during inspections. Cost Optimization Bank’s legacy system taxes them heavily regarding software or hardware updates, and finding engineers with unique system maintenance skill sets imposes an additional financial burden. Cloud-native system design simplifies the upgrade process and reduces costs. In addition, a mature build pipeline can streamline the whole software supply chain. On-demand auto scaling allows for adjustment of the cloud resource allocation so that banks can only pay for the utilization.
