The banking industry is experiencing seismic change, as the advance of cloud technology, rapidly changing customer expectations and increased competition apply pressure on traditional banking models. Meanwhile, more and more customers are moving their financial transactions online – a trend that has been further precipitated by the pandemic. This generational shift in banking has impacts across all channels and services: physical branch, online, mobile, retail, and commercial banking services are all under pressure to deliver and innovate in an increasingly competitive environment. A fundamental change in consumer behavior is setting new expectations of banking products and services. Customers are demanding ease of use, 24x7 availability, real-time data and analytics, exceptional customer support, full visibility of all banking products, and more.
In the first installment of this whitepaper series, Transform banking. Transform core., we drew the conclusion that banks must act immediately to survive and compete in the digital era. A key step in taking control of the future is to migrate their core banking systems to the cloud.
In this next installment we will discuss the key components of cloud native technology and its benefits: scalability, flexibility, availability, elasticity, and more. To take full advantage of these benefits, core banking systems need to be built in the cloud and for the cloud – coined by many technology giants as ‘cloud native’.