Google Cloud, in collaboration with Publicis Sapient, surveyed 250 senior banking leaders around the globe to better understand where they are on their Cloud journey. The results reveal a major ambition across Banks to migrate more client-facing apps and data.
Cloud ambition – triple in three years
Retail and Commercial Banks have big ambitions to increase the share of their apps and data in the cloud.
Over two-thirds of banks want at least 30 per cent of their apps and data to be in the cloud in three years’ time. That is close to triple the number of banks that have achieved that today.
Target state for cloud-transformed banks
An ideal cloud-enabled bank’s priorities:
- Customer Focused Products & Services – Enhancing the ability to develop new products and services at speed
- Data – Improving quality and use of data (e.g., personalization, pricing, risk assessment)
- Automation – Automating and redesigning key processes to reduce operational costs
- Partners – Working in an ecosystem model with capability and channel partners
- IT – Lowering the cost of managing IT
Also read: Container Management Software and Services To Grow Through 2024
So if everyone is convinced of Cloud’s benefits, where is the gap?
The report found that an ambition and execution gap are the two major obstacles to achieving the cloud’s full potential.
First, over half of the executives still undervalue the cloud’s potential. This is limiting the business transformation ambition with the cloud.
Second, participants believe they lack execution speed and don’t fully benefit from existing investments due to security concerns. Also, lack of Cloud skills is hurting.
Weak cloud configurations without the proper expertise can expose vulnerabilities
Security Concerns prevail
The report noted banks identify security concerns, including data security and fraud, as the most significant obstacle to adopting cloud.
In general, the base security of the cloud is stronger than most on-premise infrastructures. However, the report states it’s not clear cut. Executives need to explore partnerships with cloud providers prioritising security at the design stage.
Banks need to keep training and upskilling their existing employees to ensure the entire organization is moving in the right direction.
Availability of Cloud Skills is an issue
Banks identify a lack of cloud expertise as their second greatest obstacle to adopting cloud. Unfortunately, the technology skills that organizations need are constantly changing.
It is important for banks not to rely too heavily on external hires to fill talent gaps. As technology changes, those new hires will develop skills gaps of their own.
Also read: Westpac To Build New Institutional Banking Platform
Australian banks focus on upskilling
Australian banks have embarked on learning initiatives for their in-house teams. NAB has established a cloud guild and data guild to help improve in-house skills. Over 1,000 employees are certified in AWS, Azure and Google Cloud Platform.
NAB also recently launched its “Return to Work” program to help better manage the talent crisis. It has helped fill 40 roles this year, targeting another 30 by mid-year 2022.
Read more on the cloud strategies of leading banks here: NAB Digital Strategy, CBA Digital Strategy
