Banks face a multitude of challenges as they strive to transform digitally and move towards agile cloud-based solutions. To succeed, they’ll need to develop new strategies and approach their business differently.
January 07, 2020 | Richard Hartung- Even as banks migrate to cloud to lower costs, they are stuck with legacy infrastructure during transition, resulting to an increase to total costs and risks
- Over time, cloud-based verticals may replace four to five vendor solutions that exist today
- Banks are rethinking their strategy, setting up separate digital divisions and using leading-edge technology such as biometrics across businesses in order to succeed
The biggest challenge in transitioning to new technologies is running legacy systems and cloud solutions at the same time, opened up BNP Paribas chief information officer Bernard Gavgani.
“The fake news was that cloud will reduce cost,” he said, adding “By default, the cloud infrastructure will cost much more.”
The reality added Gavgani, is that businesses are moving to cloud, thinking this will reduce costs and increase flexibility. Unfortunately, large banks are still running their own data centres – even as they start using cloud – thus, the business pays for the cloud costs, on top of the legacy system costs. A second challenge, Gavgani said, is that running both legacy and cloud systems creates fragility.
Bernard Gavgani,
BNP Paribas Chief Information Officer
David Hudson,
JP Morgan Global Co-head of Digital and Platform Services
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