Banks facing ‘inevitable’ journey toward the cloud

The level of security and service that cloud infrastructures provide makes it an inevitable technology for banks and financial institutions.  Questions around operational control and security capacity dominated the cloud conversation prior to the pandemic, but the ensuing upheaval caused many banks to reexamine their processes, Narendra Mistry, chief product officer, international digital banking at core provider Finastra, tells Bank Automation News in today’s episode of “The Buzz.”  Finastra offers a range of cloud products, including Fusion Phoenix, and is partnered with banks including $762 million Seattle Bank and $210 million Puerto Rico Federal Credit Union. “The pandemic has shown people that, in reality, banks are not able to offer and deliver infrastructure or security or services like the cloud, with the ability of the cloud,” Mistry says. Streaming services are an example of successful cloud infrastructure from another industry, with providers offering always-on servicing and the ability to quickly scale alongside other business areas, he said.  “From that perspective, cloud is the inevitable solution for everyone,” Mistry adds.  When choosing between public and private clouds, bankers should weigh the benefits of in-house maintenance and cataloging against the cost of ownership, he said. While larger financial institutions may be able to afford a private cloud infrastructure, public clouds offer smaller banks lower costs and speedy experimentation rails.  “It’s important to think that, as much as I want to keep my technical capabilities within house, technicality can be looked after by professional capability, such as Microsoft Azure,” Mistry says in this podcast. “The banks can focus on much more of their business and their capabilities on what they can do and help serve the digital experience to customers. “But then again, it's all about the cost,” he adds.