Blog: Is a more favourable wind from regulators blowing away cloud concerns among banks?
In his latest blog Andrew Reeves, Managing Director for Temenos Cloud asks; are concerns over banking in the cloud easing? Here's a snippet...
The potential benefits of cloud for banks are compelling: ability to scale up IT capacity rapidly, to focus on the business and customers rather than system maintenance and upgrade concerns, reduce operating costs – and, importantly, enable the innovation banks need to ‘digitally transform’ their business so they can compete more effectively against traditional competitors and on more of a level playing field with the fintechs.
All very enticing. Yet, over the last decade there hasn’t exactly been a stampede towards banking in the cloud.
Security initially a concern
An initial reluctance was driven largely by security concerns. This was confirmed in our own surveys: in 2011, 50 percent of banks interviewed cited security as one of the biggest hindrances to movement to cloud.
It is, however, much less of an issue today, with the 2017 Temenos banking survey showing this figure had dropped to 22 percent. It is now widely accepted that the Hyperscale security processes and technology offered by leading public cloud providers such as Microsoft Azure, Amazon Web Services (AWS), and Google frequently exceed those of all but the largest banks.