At the same time, some steps towards the improvement of these hurdles are constantly made. hear this story.
Michael Harte, at the time of the events when his banks turned to cloud, the CIO at Commonwealth Bank of Australia (CBA) (back at the start of the decade – 2010s). He presented to the Board the idea of moving most of the bank’s back office to Infrastructure-as-a-Service (IaaS). The board was persuaded the regulator wouldn’t allow it and asked him to return with a different plan.
Six months later, Michael presented the same plan to the Board.
The CEO was irritated as it was obvious the regulator wouldn’t allow it.
At that point, he brought in the head of the Reserve Bank of Australia to the Board meeting, who endorsed the IaaS plan and said it was fine.
Consequently, CBA moved to IaaS and saved 35% of their operational costs, as well as becoming far more agile.
Also, much of the evidence suggests that the cloud can be just as secure as private data centers, while many are predicting that in terms of computing power, the next few years will see the cloud surpass the aggregate power used in all private data centers combined.
What Cloud Software Providers Do Banks Prefer at The Moment?
J.P. Morgan Chase & Co., after more than a year of testing offerings from large cloud providers, has its first two applications to run in the public cloud back in 2017.
The bank started the move with a couple of applications in wholesale trading, and the third app in risk modeling sometime later, “aiming to use the bursting capability of cloud computing to handle high-volume, complex computations at sometimes irregular intervals”, according to the word of bank’s ex-CIO Dana Deasy.
“Public cloud is serious. It’s time to move.” – he added.
Amazon.com Inc.’s Amazon Web Services (AWS) was chosen by the bank at the time.
The current Chief Information Officer at JPMorgan Chase, Lori Beer continued the course chosen by her predecessor.
She claimed that the bank has learned a lot during its transition to using services from outside cloud computing providers such as Amazon Web Services. In succession of these endeavors, “JPMorgan will soon give the green light to storing “highly confidential” data with cloud providers”. That serves as a sign of the bank’s confidence in its revamped cloud strategy.
TD Bank Group (TD) and Microsoft back in April 2019 announced a strategic relationship in which TD will use Microsoft Azure as the cloud foundation to provide its technology and design teams with tools designed for secure, agile and flexible access to data and AI resources.
This further enables the Bank to adapt and quickly respond to changing customer needs.
“At TD we are shaping the future of banking in the digital age by creating personalized, connected and legendary experiences across all of our channels. Our strategic relationship with Microsoft will help accelerate and fuel new and innovative banking experiences for our customers, clients, and colleagues”, – said Bharat Masrani, Group President and Chief Executive Officer, TD.
Microsoft Azure is positioned to help accelerate new capabilities when it comes to the design and delivery of future customer banking experiences.
Royal Bank of Canada
Royal Bank of Canada (RBC) has adopted the IBM Cloud to increase business agility, shorten time-to-market, and facilitate the adoption of emerging technology.
“Perhaps three main imperatives for us to adopt something like IBM Cloud solution: The top one is increasing the business agility, and the next one is much shorter time to market; and the last one is the ability to take advantage of IBM Cloud in terms of adopting new technology, to speed us up tremendously in terms of adopting new technology as well. ”
Those are the words of Francis Li, senior director of solution engineering and wealth management at Royal Bank of Canada.
We can see that there is no special trend to follow and no one-fits-all solutions for all the banks as big banks choose across different providers.
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What’s Next For Cloud Technology in Banking?
More and more banks are going to transfer part of their operations to the cloud. It is hard to guess which cloud provider will prevail, but we can see big banks choosing among the leaders of the industry quite sporadically.
Some banks trust Amazon, the others choose Microsoft’s Azure, the third ones turn to IBM Cloud, while many stay reluctant to using any cloud technologies in their operations seeing no point in fighting regulators and overcoming other hurdles mentioned earlier.
We’ll keep a close look at the situation, and here is the prediction of Microsoft representatives as for April 2018:
“The key to successful cloud adoption in financial services will be a tight partnership between regulators, financial institutions and cloud providers to ensure that the right frameworks, programs, and processes are in place as financial services providers increase their usage of cloud services”.
If everything adds up, banks will be able to save more and operate in a more agile and secure environment.