Chandramouli Sundaram, Senior Vice President Delivery –
Chandramouli Sundaram, Senior Vice President Delivery – Data Engineering,
Maveric Systems Limited
In a bid to modernize businesses, banks, and financial institutions are increasingly using cloud computing. While this is true, the reality is that a larger population of IT decision-makers remain hesitant to use cloud technologies.
Cloud providers offer secure infrastructure and tools, but customers are ultimately responsible for configuring and using those resources in a manner that complies with regulatory/country-specific/industry- specific requirements. While cloud providers have made significant strides in enhancing their compliance capabilities, there may still be specific regulatory requirements that they need help to support fully. Banks should conduct thorough due diligence and work closely with their cloud providers to ensure compliance with all relevant regulations. Here are some key factors that contribute to their dilemma.
Here are some specific challenges that banks may face when using cloud computing:
Choosing between on-premise and cloud solutions depends on an organization’s specific needs, regulatory environment, risk tolerance, and readiness. Some banks may remain on-premise, while others may adopt a hybrid or full-cloud approach. Regardless of the choice, data security, compliance, and business continuity will remain top priorities for financial institutions. As data security concerns rule the roost for banks, on- premise solutions remain the right option for most banks.
For banks that prefer staying on-prem, we support them by –
Staying on-prem can impact business outcomes for banks more in terms of time than cost. On-premises infrastructure can limit this ability due to the limited software and hardware features and functionalities. Preparing for the banks of 2030 will need strategies aligned with changing consumer expectations and emerging technologies. The banking industry is moving towards the Cloud. According to a recent report by Gartner, 70% of banks will have adopted a hybrid cloud strategy by 2025. With digital natives on the rise, mobile banking, on-the-go access to services, and hyper-personalization of services, we expect to see more banks adopting newer ways of operating and marking their presence in the Cloud.
Cloud computing refers to the delivery of computing services over the internet, including storage, processing, and software, allowing for flexible resources and faster innovation.
Data residency refers to the physical or geographic location where data is stored and managed, often influenced by local laws and regulations.
Regulatory compliance is the process of ensuring that an organization adheres to laws, regulations, guidelines, and specifications relevant to its business.
Risk management involves identifying, assessing, and prioritizing risks followed by coordinated efforts to minimize, monitor, and control the probability or impact of unfortunate events.
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