Growing demand for security demands to adopt Cloud Technology

Previously, financial services and institutions have been at fault for not adapting to cloud technology. But now many of the retail banks are slowly turning towards the cloud for less risk-averse services.

But when you look back, many of the chief technology officers at various financial services were not interested in cloud technology. This is because of the perceived complexity or privacy concerns. Though few have already welcomed cloud technology, slowly the shift started to occur.

According to the latest Fenergo survey of global banks and asset management firms, almost two-thirds and 56% of the senior decision-makers stated that investing in cloud technology was their top priority. This can be a great sign for powering the technology.

Most of the CIOs are encouraging digital banking and showing concern towards data privacy.

And the developments brought by artificial intelligence and machine learning are going to bring many changes within the financial institutions of today.

Since leaders are actively adopting cloud technology, these changes are definitely the results of understanding the benefits of cloud technology and its security eliminating previous concerns around data privacy and data identity management.

The rise of digital banks and customer expectations has greatly influenced decision-making among financial services and institutions to adapt to the trend. Even though key players are just going with the market to sustain, it becomes less to talk about because the priority lies in adapting to cloud technology for better services.

To be very specific, the cloud-based systems and solutions that the institutions are adopting are also significant. This is not just a case of migrating workloads that do not have any privacy and compliance issues into a public cloud and being more sensitive towards data in a more hybrid model than the earlier models.

Cloud technology is taking over the financial services slowly from covering the front office with customer experiences to the regulatory compliance technology that is used to onboard clients, conduct checks, and detect any issues of financial crime.

But this shift from traditional technology to cloud technology is not easy and CIOs of the organizations of financial services will surely have other competing priorities too. And sometimes without the budget and resources to address them in parallel. At this point in time, they need to think of how the technology can benefit the system, what opportunities does it enable and what risks does it mitigate. These questions need to be answered for a better transformation strategy.

Once the foundations for a cloud strategy are played out, regulatory compliance technology like customer lifecycle management solutions should sit fairly high up on the list. This can help in mitigating the risk but also can remove a lot of friction that customers can experience during the onboarding with manual processes.

To emerging challenges, regulations are also evolving in various jurisdictions. A cloud-based approach to CLM is more flexible to adapt easily. The CIOs are looking to their technology partners to help them make the right decisions for the organizations. With this, the scope of the cloud technology being used by most of the banks also increases in the coming days reducing fraudulent behaviors.