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Overcoming the Cloud Adoption Challenges in the Financial Services Industry



TL;DR

What are the significant benefits of cloud for the financial services industry?

The PwC article “Cloud transformation: Key takeaways for financial services firms” emphasizes the significant benefits of the cloud for the financial services industry, such as faster business value delivery, innovation at scale, near-real-time data processing, outstanding customer experiences, greater business agility, and continuous transformation capacity.

What is one provable return of cloud for financial institutions?

A provable return for financial institutions would be the switch from a CapEx to an OpEx model for IT. Traditionally, geographical business expansion requires high upfront CapEx. An on-prem model requires the CIO/CTO to invest in costly IT hardware every few years and depreciate these assets over their useful life. However, these capital expenditures are substituted with usage-based monthly payments to cloud service providers in the cloud model. Moving to cloud-based technologies liberates organizations from hardware limitations and enables them to adopt flexible OpEx models that focus on driving innovation and delivering excellent customer experience.

What should an effective cloud adoption program for the financial services industry include?

An effective cloud adoption program for the financial services industry should incorporate an elaborative legacy application modernization strategy. Otherwise, legacy system maintenance would become a substantial financial burden and an impediment to integrating high-tech systems, averting cloud benefits. There’s a requirement for a clearly-documented cloud strategy covering all company aspects that supports the overall company strategy for long-term success. Migrating to the cloud should be accepted as a businesswide project requiring senior executive sponsorship tied to a culture change in financial institutions. It should be implemented as an infrastructure platform for business development to drive change, not a separate IT project. Cloud governance must entail all endeavors related to information security, cost management, outsourcing risk management, and innovative data practices while staying within regulatory constraints.

Author: Gizem Terzi Türkoğlu

Published on: Nov 11, 2022