Banking models under pressure for radical change
COVID-19 has given new urgency to the banking cloud imperative. Within a few short weeks the scalability, resilience, flexibility and accessibility of public cloud looked a lot more attractive, as banks sought to manage uncertainty and pivot to a different operating model.
As banking executives assess that potential new landscape, together with the strong performance of the public cloud during the past few months, a typical conclusion is that it’s time to ramp up their banking enterprise cloud strategy.
Arguing the case for cloud in banking
For the cloud evangelists, public cloud was the answer to banks’ quest for secure, personalized and seamless omnichannel customer experiences, powered by internal and external data. It enabled self-service, incorporated the best third-party products, was compliant by design and generated returns that exceed the cost of capital.
But the skeptics weren’t so sure; they cited security concerns, regulatory ambiguity, potential competitive issues with the largest cloud service providers and the seductive economics of fully depreciated data centers. The debate continues, but the evangelists have gradually gained the upper hand: Cloud investment has grown strongly in recent years and is forecast to continue at 15 percent a year between now and 2022.
Multi-cloud fits the bill for banks
More than half of our top banking clients have adopted a multi-cloud strategy. We believe that, to an increasing degree, this suits the requirements of most banks. Key benefits include:
Separating the best from the rest
The pandemic has provided an unexpected opportunity to contrast the performance of cloud-based technology versus legacy technology. Accenture’s experience of helping large banks move their applications to the cloud is that it typically delivers impressive benefits:
Added to this are the often more important benefits of cost variability, enterprise agility, an enhanced customer experience and support for both compliance and innovation.
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