Banks face a multitude of challenges as they strive to transform digitally and move towards agile cloud-based solutions. To succeed, they’ll need to develop new strategies and approach their business differently.
January 07, 2020 | Richard Hartung
- Even as banks migrate to cloud to lower costs, they are stuck with legacy infrastructure during transition, resulting to an increase to total costs and risks
- Over time, cloud-based verticals may replace four to five vendor solutions that exist today
- Banks are rethinking their strategy, setting up separate digital divisions and using leading-edge technology such as biometrics across businesses in order to succeed
The biggest challenge in transitioning to new technologies is running legacy systems and cloud solutions at the same time, opened up BNP Paribas chief information officer Bernard Gavgani.
“The fake news was that cloud will reduce cost,” he said, adding “By default, the cloud infrastructure will cost much more.”
The reality added Gavgani, is that businesses are moving to cloud, thinking this will reduce costs and increase flexibility. Unfortunately, large banks are still running their own data centres – even as they start using cloud – thus, the business pays for the cloud costs, on top of the legacy system costs. A second challenge, Gavgani said, is that running both legacy and cloud systems creates fragility.
Bernard Gavgani, BNP Paribas Chief Information Officer
JP Morgan, on the other hand, wants agility and standardisation, as told by David Hudson, global co-head of digital and platform services. To achieve these objectives, JP Morgan is using internal and multi-cloud solutions as well as commoditised infrastructure. Additionally, the bank intends to be a platform provider of financial services.
“It takes time to work out how you want to get there,” Hudson said. On the cybersecurity front, “We think cloud vendors have a better solution,” even though the bank spends a billion dollars a year on cybersecurity. “They have...
Please login to read the complete article. If you already have an account, you can login