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Pull the Trigger: Considerations for Cloud Adoption

A few years ago, proposals to move the core systems of banking, financial services, and insurance (BFSI) operations to the cloud would have faced staunch opposition from top decision makers. But as is often the case in the financial world, the tide has turned again. Today’s largest financial institutions have pushed public cloud adoption to the top of their priority lists, and investments in BFSI cloud Approximately 15% expansion in 2022While this renewed enthusiasm is refreshing, Uncertainty and Doubts Still Remain Need to resolve.

The realization that the regulatory hurdles that inevitably arise when sensitive data is stored in the cloud compound the question. Whatever the drawbacks, the cloud’s inherent agility, cost efficiency, and scalability put BFSI operators in particular under increasing pressure to remain relevant and responsive in an increasingly uncertain economic climate. So it might be too good to dismiss. Still in doubt, consider the following when weighing the costs and benefits of moving to the cloud:

Advantages of cloud banking

Perhaps the biggest misconception most BFSI operators have is that moving to the cloud adds complexity. After all, this is a brand new infrastructure. However, while there may be technical issues in the early stages of the migration, the long-term payoff is worth the effort when it comes to efficiency, security, and maintenance.

BFSI operators have significantly less organizational complexity for resource-intensive workloads such as email and identity management. First and foremost, moving email hosting and related applications from off-premises to an “as-a-service” cloud provider greatly reduces the maintenance, budgetary pressure, and provisioning burden on IT teams. Being able to leverage her identity management and user access restriction capabilities on the cloud provider side also helps increase security while reducing his OpEx and workload for the BFSI operator.

Moving to the cloud will also help BFSI operators better manage their security and regulatory risk posture. This is definitely a major concern. Choosing the right cloud service provider (CSP) is essential here. Conduct due diligence to ensure proper compliance with local data privacy laws or financial regulations. If your organization operates or has customers in different countries/regions, make sure the CSP you choose can comply with local data regulations such as GDPR and CCPA, as well as international financial regulations.

With the exception of fintechs, most BFSI operators also have to consider numerous legacy applications and code that powers most of their operations before moving to the cloud. Certain infrastructure as a service (IaaS) solutions enable organizations to port large portions of their legacy systems to the cloud. This approach will also increase the number of cloud-based services and products to replace traditional systems. This is always recommended to help BFSI operators remain resilient, agile and adaptable in the face of change. But the first step is always deciding to move to the cloud.

Disadvantages of cloud banking

While this does not largely negate the strong arguments against the cloud, BFSI operators should nevertheless consider and be cautious of the shortcomings of their adoption. Shifting responsibility for infrastructure operations to her CSP also means that BFSI operators must work on their terms. This impacts important risk mitigation capabilities such as disaster recovery and data breaches. All his CSPs have their own policies regarding backups, storage, and data retention. BFSI operators should understand the scope of these policies and determine whether they meet the stringent requirements of the financial industry.

When systems are moved to the cloud, the final performance often fails to meet initial expectations or is unsatisfactory. This tends to be the result of poor planning and inaccurate service level agreement (SLA) writing. This can also be the result of a “lift and shift” mentality, in which code and applications are migrated as-is without regard for technical limitations or incompatibilities.

Addressing both issues requires consistent real-time monitoring. This allows organizations to identify performance and security issues before they become unacceptable risks and compromised customer experiences. Unfortunately, most of his CSPs are not inclined to share their data with their customers without good reason, making cloud monitoring and optimization difficult without a dedicated network monitoring solution. BFSI operators should consider investing in such solutions in the early stages of cloud adoption if they want to meet customer expectations for frictionless digital services while complying with increasingly stringent data security laws and financial regulations. I have.

As with any technological solution, the coin has two sides, but today the cloud offers banks and financial institutions more advantages than disadvantages. The ability to scale your treasury operations, improve security, and rapidly deploy digital services with just a few clicks. However, BFSI operators are wise to consider the above points even as they adopt the cloud to remain relevant, adaptable and secure in today’s increasingly uncertain world. .

Image credit: © stock.adobe.com/au/monsitj

Pull the Trigger: Considerations for Cloud Adoption

Source link Pull the Trigger: Considerations for Cloud Adoption

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