Banks are notoriously averse to adopting new technology. Many big banks remain attached to their legacy IT environments and are very concerned about cloud security and privacy. As big banks look to move functions to hosted environments, payment processing and document management are good starting points. Small banks find it easier to adopt cloud-based services as they are not weighed by a legacy IT environment.
There are some notable exceptions, and certain financial institutions are making great strides. For example, Bank of America has tested cloud platforms with cost reductions realized by as much as 50%. Pending the conclusion of satisfactory tests, the bank intends to take major cloud adoption in 2015. Bank of America is developing two platforms for its private cloud environment, one proprietary and one based on OpenStack. The bank has run a pilot program.
Financial institutions are expected to implement cloud solutions for data management and analytics for a variety of reasons, including improved customer behavior predictions leading towards improvements in customer satisfaction and retention. At the macro level, financial institutions also intend to use cloud-based big data analytics by focusing on investments with better risk management processes and creating more predictive patterns of the economy.
Some banks are looking at the cloud primarily as a cost savings measure with some moving to a private cloud as a hybrid step in which they have sole use of a data center. For example, Bank SinoPac in Taiwan is realizing upwards to 50% reduction in IT infrastructure costs by moving from a mainframe computer to a private cloud.
Global Cloud Computing: Infrastructure, Platforms, and Services 2015 – 2020 evaluates the global and regional markets for Cloud Services, including IaaS, PaaS, and PaaS by solution type (Private and Public). The report provides analysis of specific challenges and opportunities from both the customer and the Cloud Services Provider (CSP) perspective.
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The blog post is collaboratively written by members of the Mind Commerce staff.
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