Cloud computing is been around for a long-time, but recently the only bank has started using it. They are now able to understand the cloud has the true potential for innovation and change. Banks not only be able to reduce the cost of infrastructure but also, they will be able to use the new initiatives which will help the bank in working efficiently. Banks are also able to outsource the software to the providers which will help in easy to run and operate. In this way, the product portfolio is also been scale at large. It is not just the savings into IT, but it will also help in driving the banking services to the cloud. Banks want the change to be groundbreaking. Both challenger and traditional banks are looking for leveraging cloud-based digital banking for fostering the new business models. They don’t want to just overcome the challenges of the market but they also looking for continuous growth.
Currently, Cloud is the most talk topic in the banking industry. Due to the presence of various benefits like cost reduction, risk mitigation, faster innovation, and faster digitization for most critical services. The report from economist is showing that the global survey by the economist proved that around 400 global banking executives are looking for the change which will happen till 2025. Cloud can give significant improvement to the performance of banking services. They will boost the computing power at a very high rate. People are anticipating that the utilization of the cloud will overtake the utilization of the cloud in the next decade. Adoption of the public cloud in banking is predicted to occur by 2023, according to Gartner. Five-year continuous growth is been predicted at the rate of 15.2% CAGR.
If the consumer is demanding seamless services, then regulation and other new banking entrants are also adding pressure to the banks. Banks are under high pressure for innovation at the pace and scale which is compliant and relevant. They also want to increase the profit margins. Changing the production system of the bank is very risky and costly. Insufficient test coverage, low level of automation, and weak processes for hardware provisioning are the main factors that are hampering the innovation in banks. DevOps and Agile methodology will be needed to implement in most of the banks for overtaking this all. Banks are also struggling to get good returns.