As noted by Bank Director, financial firms are moving to the cloud to leverage three key advantages: innovation, cost savings and flexibility. This matches the general enterprise approach to cloud computing — companies are looking to do more in the cloud, quickly, without going over budget. For many banks, however, the cloud creates a compute conundrum when it comes to service and security.
As research firm McKinsey pointed out, for banks to better serve customers during the global pandemic, improved digital tools, products and services are essential. But security expectations are evolving simultaneously, with firms now expected to ensure due diligence around the collection of digital identity data, the increasing use of open-source banking solutions and the management of artificial intelligence tools.
This creates a potential paradox: While public clouds offer the compute scale necessary to deliver on-demand services, banks may be more comfortable with the security of on-premises solutions.