Driving Customer Experience with Public Clouds
Analyst: Jerry Silva
Retail banks continue to minimize costs while improving customer engagement, all under regulatory pressures to manage risks and increase security. Institutions are increasingly leveraging the availability of solutions and platforms “as-a-service” to take advantage of improved agility, decreased time to market and lower costs.
Mobility and online channels are key to acquiring and retaining banking customers, many of whom are already familiar with innovative experiences in other industries. Indeed, customers want omnichannel experiences and are demanding a range of better services from banks including security, personal financial management tools and contextual marketing. The ability to respond quickly to customer needs is driving banks to cloud-based solutions like advanced analytics. And in the back office, legacy transformation is relying on cloud, big data and analytics, AI, and open APIs to increase security, improve costs and enable agility.
Due to the numerous capabilities the cloud affords retail banking, the industry is increasingly turning to the cloud for deployment.
Banks are moving to “Connected Banking” architectures using open APIs to consume and provide innovative solutions through cloud-based ecosystems.
Banks understand that the future of the organization lies in the ability to create an open, agile and responsive infrastructure in order to connect to external sources of value (digital marketplaces) and create new products and services for its own customers.
To overcome the challenges of legacy modernization and leverage opportunities in the digital marketplace, banks will move to a connected banking architecture that can expand beyond traditional financial products; support participation in the growing payments/e-commerce space; provide multiple sources of collaborative platforms and data-as-a-service solutions; and enable faster response to market conditions.
Security remains a top concern for banks looking to move to a public cloud model for critical workloads. Yet security is cited as the top benefit for moving to public cloud. This apparent paradox is attributable to a lack of knowledge around the depth of security capabilities at cloud providers in the industry.