IT in banking: recent trends

High standards of compliance policies and security of the financial sector create a lot of obstacles to the adoption of cloud technologies. Financial organizations have large and complex it infrastructures that rely on mission-critical applications and meet the strict criteria and extremely stringent safety requirements. It is not surprising that these factors cloud computing in the financial sector meet with skepticism.

Despite the predictions of recent decades that banks here-here will be widely used cloud, only 1% of banks today handle and store information in the cloud, according to a new report "Shifting Sands: banking in the digital age". This is the eighth annual report, in which analysts paint a mixed picture.

050416.jpg On the one hand, research 2015 showed that 89% of organizations use at least one application in the cloud; in 2009, when this issue was raised for the first time, such organizations was 57%. However, the core banking applications are still not used in the cloud. The main reason is fear of transfer to the cloud confidential banking information. Cloud technology in the banking environment is evolving more slowly than expected.

The main reasons for slow adoption of cloud technologies – the low profitability of financial institutions; the need to redirect budgets from maintenance to innovation and scalability to work effectively in peak periods. While the apps that are most likely working in the cloud, are electronic mail (67%), CRM (52%) and data storage (35%).

Surprisingly, compared to last year significantly reduced the barriers posed by legislation and regulation from 25% to 17%.

The legislation was one of the two main hindering the development of cloud factors during the last two years, and the number one factor before this. Craig Donaldson, CEO metro Bank, noted that the regional results were particularly worrying for Europe, where 21% of respondents think legislation is the main problem, compared with 12% in the Asia-Pacific region, the middle East and Africa and 17% in North and South America.

Keep your money in banks, and banks in the cloud

With cloud computing, banks can focus on your core business and not on the work on scalability of the infrastructure. Banks can use cloud technology primarily to improve performance during peak load, but in the end, the cloud may spread to other areas.
The potential benefits of using the cloud for banks exist in the following areas:

  • The management of business processes (BPM), business intelligence and content management
  • Archiving and information search, email archiving, email security
  • Back-office (e.g. card processing)
  • Various kinds of processing payments and their consolidation
  • Risk management
  • Corporate portals
  • XTTPS platform for extreme transaction processing Extreme Transaction Processing Platforms) – for example, the creation of conditions of transactions "in the cloud" using XTP (Extreme Transaction Processing extreme transaction processing)
  • Identity management
  • Corporate CRM
  • Reporting on consumer credit and sales automation
  • System client support
  • Retail business and trade on the exchange, currency exchange
  • Managing domain name service (DNS)
  • Data storage and backup
  • Critical planning (for example, the end date of the contribution and the amount of accrued interest)

It scared the cloud, as it is painted?

When you migrate to the cloud, banks need to move your critical and confidential data and systems. Protecting this data is essential and an absolute priority for the Bank; solution providers should particularly focus on this aspect, to be able to convincingly justify the need for migration to the cloud. The Association of control and audit of information systems (ISACA – Information Systems Audit and Control Association) has offered two-factor authentication system that is connected to a secure, encrypted infrastructure that can protect a Internet connection cloud services.

Instead of a conclusion

Cloud computing is one of the key areas of innovation in enterprises according to experts and analysts. It is expected that the cloud will bring a huge change in the field of information technology.

Although the current percentage usage of cloud computing at banks is low, the benefits that they guarantee will lead to increased popularity of cloud computing, and in the coming years the percentage of using the cloud in the banks will be higher.