The future of IT technology should be geared towards the adoption of cloud computing by businesses. This is one of the most common recommendations in reports on technology trends in 2022, such as those recently published by global consulting firms KPMG, Deloitte, and IDC.
What are the advantages of cloud computing for banks?
This system of organising computing resources into services through the internet offers significant strategic value to companies, as its capacity for updates is limitless compared to traditional environments. It is also a secure, cost-effective, flexible, and fully modular system, allowing services to be scaled up and down as business needs change.
“The benefits of cloud computing in terms of flexibility, elasticity, cost transparency, reduced complexity (standardisation), agility in management/maintainability, even improvements in security and monitoring (ELK) are still very compelling reasons to go to the cloud as soon as possible,” as Francesc Pérez, Chief Revenue Officer at Latinia, explained in the analysis of a survey on cloud adoption sponsored by Temenos.
Cloud computing also encourages the implementation of new business models for banks, accelerating innovation in products and services to improve the customer experience. “The adoption of cloud computing would allow us to move beyond the boundaries of current platforms and services to efficiently integrate industry business solutions, enterprise resource planning, customer relationship management, workflows, and related services,” said Christian Rast, Global Head of Technology & Knowledge, and Jens Rasslof, Global Head of Strategic Relations & Investments at KPMG, at the presentation of the study The top 10 tech trends of 2022.
In its Trends 2022 study, Deloitte expresses its confidence that implementing the vertical solutions proposed by software and cloud vendors will modernise “legacy processes” and free organisations “to focus resources on competitive differentiation”.
In short, cloud computing can boost the transformation of traditional financial institutions so that they can continue to compete in the market with other digitally native industries, set themselves apart from the competition, and generate new opportunities for growth.
How can we manage the migration to cloud computing?
The banking sector is undergoing very significant business changes and despite having considerably accelerated the digital transformation process, it continues to be bound by very complex and cumbersome legacy infrastructures, which it must reshape in order to continue moving forward.
Despite this starting point, the process of migration to cloud computing is progressing at a good pace. According to data from the International Data Corporation (IDC), the volume of the non-cloud market is expected to double within five years. In a recent presentation on global predictions for the ICT industry in 2022, which featured the consultancy firm’s vice presidents Alejandro Floreán and Ricardo Villate, it was suggested that cloud computing is expected to have an average annual growth rate of 15% in Spain, which still lags behind the United States and the United Kingdom in terms of cloud adoption. For Latin America, the growth forecast is even higher and is estimated to be as high as 30%.
Whatever the pace of migration of each bank in its digital transformation process, at Latinia we are committed to being by the bank’s side every step of the way and adapting our solutions to each client to support the bank in its journey towards the cloud. As Oriol Ros, Director of Corporate Development at Latinia, says: “Banks have inherited elements that are difficult to migrate in a short period of time, which will require adaptation and support, and we want to be a part of this. Different lines of operation will coexist within our offer; on-premise versions will coexist with cloud-ready versions, prepared for an imminent leap to the cloud, with cloud-native versions. Our aim is to ensure operational continuity regardless of the progress made towards cloud adoption and to provide a gradual response in line with the speed at which the bank chooses to do so.”