Cloud Banking: A Strategic Business Objective, Not an IT Project
Cloud adoption in the banking industry has proven tangible results for institutions of all sizes, showing positive growth in the adoption of hosted environments versus on-premise installations. In fact, 54% of financial-services leaders expect to shift at least half of their workloads to the cloud over the next 5 years, according to a McKinsey survey, where 15% of institutions are already reporting half or more of their IT footprint in the cloud today.
With perceived complexities around conversions, security, and other operational points, what’s the buzz around the cloud?
Cost, Scalability and Efficiency
On-premise solutions may enable you to meet operational goals, but their related costs and IT overhead are likely weighing things down. With the reliance on a secure cloud environment, overhead and cost savings are quick wins for your institution, allowing banks and credit unions to reduce their IT infrastructure spend by eliminating the need for physical servers, storage devices, and other hardware. Instead, pay only for what’s needed and scale your operations as volumes, users, and market demands dictate. According to a report by Deloitte, 50% of a bank’s or credit union’s IT infrastructure spend can be eliminated just by leveraging a hosted deployment.
Other maintenance costs surrounding the upkeep of physical servers can also be eliminated through a migration to the cloud - a benefit that can be particularly beneficial to community banks or credit unions who may not have the IT or employee resources in-house to maintain on-premise solutions.
Don’t be Left Behind
Being competitive also means your institution must remain current. Always up-to-date, hosted offerings deliver a competitive advantage for your bank or credit union with accelerated deployments, access to the latest software features and versions, and quicker access to an ROI. Boost internal efficiency while growing ensure user adoption as a result of fast-to-market solutions and capabilities.
Trusted and Secure
Data access remains a top priority for financial institutions, which is why the cloud is ideal for those banks and credit unions who have a focus on security. Hosted offerings often incorporate security measures to protect account holder data, like firewalls, encryption, and access controls that adhere to strict compliance regulations and ensure information remains secure. Leaning on the cloud allows institutions to leverage these security measures, without the need to invest alone in security protocols or in-house expertise to manage such deployments.
Consider Cloud Adoption as a Strategic Business Objective, Not an IT Project
Those that utilize the full potential of the cloud realize a better reduction of costs and improved scalability across their entire institution, allowing for better, more personalized customer and member services. Framing cloud adoption as a strategic initiative across the institution presents an opportunity for banks and credit unions to modernize their operations in connection to organizational goals – whether those are cost, product, IT, or operations related.
Thrive in today’s fast-changing banking market by leaning on the cloud.
Accessible for product deployments across the entire Alogent suite of solutions, Alogent Cloud offers banks and credit unions cost-savings, flexibility, and secure access to innovation. Its multi-tenant, private cloud environment scales exponentially to accommodate users, locations and volumes as needed, delivering a competitive advantage and continued opportunity for growth and cost-savings for institutions of all sizes.
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