It’s time for banks to start trusting the cloud

Though some are beginning to realize its benefits, many banks still reject the notion of moving to the cloud and adopting cloud-based applications. They do so despite the fact that these can now be pretty well integrated in banking ecosystems. They are also generally acknowledged to be a secure way of handling data. Sooner or later however, banks will need to become more open to this new technology. We’ll tell you why.

The reluctance to switch to cloud

And though adopting cloud-based solutions seems to be a good solution for several issues that arise from the evolution of the industry, many still reject. They have fears regarding insufficient security levels, new security protocols, regulatory compliance, data storage, migration risks, and so on.

A benefit against every doubt

So why are cloud solutions worth to be given a serious thought? Here are a few of their many advantages:

• If desired, private clouds (as opposed to public ones) can also be kept on-premise. Moreover, these are dedicated to one company only and are fully customizable. Also, these can be more cost-effective in the long run.
• Greater control over security is also a key feature. Security levels can be adjusted to the user’s needs in SLAs (service level agreements) and additional security measures like virtual firewalls can also be added.
• Cost effectiveness – cloud services can eliminate expenses which can mean substantial amounts for larger IT systems in terms of both equipment and personnel.
• They allow for a smooth workflow where capacity can be flexibly adjusted.
• Cloud systems can give redundancy through equipment and data centers built to have multiple fail-safes.
• High availability and accessibility– cloud solutions can be accessible from basically anywhere.
• Cloud supports the secure collaboration and data sharing. This is crucial in the light of current client transaction trends as well as the spreading of open banking.
• Cloud can be well integrated with existing banking ecosystems. For instance, our flagship innovation GAMMA also supports it.
• Last but not least, public clouds are not to be feared. More and more members of the sector vote confidence to it on a global level.

Escaping forward

All in all, no matter how difficult the decision to move to the cloud may be, we truly believe that the large and many times heterogeneous banking IT systems deserve the care and benefits of this scalable solution. Moreover, its integration will soon become inevitable in an era when the global financial services industry is undergoing substantial and revolutionary changes. We believe that the fact that Temenos also introduced a cloud-based solution is a great indicator of the reliability of the practice.

Cloud is the future.