FinTech companies are becoming more agile by the day, and it has become imperative that banking institutions offer compelling services to both new and existing customers, in order to become more agile and open as well. To address this issue, some banks are striving to become more flexible as an organization, adapt to new and emerging markets, and even leverage elements within FinTech ecosystems, in an effort to streamline their digital strategies and expand their reach.
As a result of those objectives, the market is seeing a steady trend where banks are hopping onto the hybrid cloud bandwagon. For many banks, one can find a balanced mix of private and public cloud utilization, while high performing banks often adopt enterprise-wide hybrid cloud strategies. All in all, you can expect that hybrid cloud adoption features flexibility, and come with the benefits of both public and private cloud while addressing data compliance, governance, and security needs. Here are some reasons why more banks are choosing to embrace the hybrid cloud:
Reason #1: Promote Innovation
An increasing number of bankers are realizing the benefits of being able to expand one’s product or service portfolio, opening up new revenue streams, and expanding into new industries; provided that the bank has launched successful cloud initiatives. Cloud technologies have the ability to transcend barriers of geography and industry; that’s why it fosters a great environment to achieve more innovation outcomes.
Reason #2: Improve Operational Efficiency
Banks that need to solve business problems at a faster pace are now turning to hybrid cloud as it can help them provide and allocate resources effectively across an entire enterprise without delay. Today, banks must have the ability – and the speed – to respond to ever-changing market demands, while reducing the time needed for problem-solving. The good thing is that hybrid cloud adoption is helping to accelerate the go-to-market for these kinds of initiatives.
Reason #3: Achieve Cost Reduction
The hybrid cloud can help to facilitate a switch from fixed to variable expenses for business owners. With that said, banks will enjoy greater flexibility while managing the costs of maintaining their IT infrastructures. In addition, this shift allows the banking cohort to focus on business funding initiatives, and not just on investing in capital equipment that are under-utilized.
If you have noticed the trend, you can see that hybrid cloud adoption is steadily maturing. High-performance banks are already achieving significant successes through this kind of cloud adoption. That’s why it is pertinent that you get it right too. You need to find a flexible cloud model that is suited to your workloads. You may want to ask yourself questions like whether you should leave sensitive data on-premise or move those data sets to the cloud.
As long as the cloud’s footprint is consistent across your organization, you should be able to gain financial, strategic, and economic benefits from the hybrid cloud. If you wish to find out more on how the hybrid cloud can address your bank’s unique needs, do not hesitate to consult ANEXIO today.