Industry Trends: Latest Cloud Technology Adoption by Financial Institutions
Financial service firms were initially slow to adopt the cloud over security concerns and relied on on-premise systems, but as cloud security has improved over the years, financial services have come to realize keeping onsite infrastructure safe is difficult, inflexible, and costly. When it comes to offering new and relevant services, financial institutions that want to offer an all encompassing platform need to move as fast as their fintech peers and the cloud allows them to do just that.
Today, financial institutions are much more confident in the security of both public and private clouds. At Payveris, we see a mix between the use of both private and public clouds, although there is a very healthy amount of AWS and Azure being utilized.
Industry trends reveal that more financial services firms are becoming avid cloud adopters. They are embracing innovation and the speed-to-market that it requires to keep up, which the cloud helps to enable. The cloud has also continued to prove itself as an increasingly secure and safe computing environment.
Cloud technology is cost-saving for the financial institution when they shift away from on-premise to the cloud, especially when they outsource to a fintech, like Payveris, which offers a cloud-based, digital payments hub built around completely open-APIs, simplifying the back-end for the financial institution and reducing overall IT spend and overhead costs.
Financial services firms are leveraging cloud technology in almost every facet of their business. Banking cores are commonly cloud-based or cloud-enabled. Cloud technology is used to power digital and mobile banking channels, along with many of the auxiliary services that round out a financial institution’s digital presence – technologies like conversational AI, banking-as-a-service offerings, data exchange and open APIs, and digital payments, which is the area Payveris accels in.
One of Payveris’ clients, and second largest credit union in Washington state, with $4.1B in assets, implemented our cloud-based MoveMoney platform back in 2013, and this has enabled them to be extremely flexible with their ongoing digital initiatives. When they recently acquired another credit union, their cloud utilization empowered them to avoid frustrating member outages, service interruptions, and costly, time-consuming on-premise projects. Our MoveMoney platform was able to keep all of their existing servicing going while the acquired members’ banking data was cleanly migrated from the legacy technology over to the cloud. This is a great example of the agility that the cloud presented to the credit union, while helping them to avoid major headaches in data support and conversion.