Hybrid Cloud the Future of Banking Infrastructure

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There is no denying that hybrid cloud provides a personalized solution. While an on-premise cloud can be optimized for operational availability and stability, an off-premise cloud can be used for the speed and agility which is essential to enrich customer engagement.

Merging both public and private clouds’ advantages while mitigating their limitations, leading banks are already pursuing hybrid solutions. Many bankers have reported that hybrid cloud adoption lowers their total cost of technology ownership, improves operational efficiency, promotes innovation, aids the development of new business models, and supports more fulfilling customer engagement.

To power banking transformation, hybrid cloud engages some powerful business enablers.

1. Cost flexibility

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Hybrid cloud assists banks to manage costs with greater flexibility by facilitating a shift from fixed to variable expenses. This shift enables banks to focus on funding business initiatives rather than tying up investments in under-utilized capital requirements.

2. Business scalability

Hybrid cloud not only helps in reducing the need to fund in-house infrastructure but also supports immediate scalability in business functions. A leading North American bank aimed at scaling its operations quarterly to serve its customers satisfactorily during peak hours. The bank implemented hybrid cloud solutions that enabled it to increase its on-premise infrastructure to a secure cloud in workloads, thereby enhancing customer service at reduced costs and higher security.

3. Market adaptability

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The hybrid cloud enables market agility, thereby making it cheaper to experiment with new tactics. A leading Australasian bank identified customer experience as their priority area. They implemented a hybrid cloud solution to reduce time to market and delivered an improved mobile experience to its customers.

4. Masked complexity

At a stage when customers are increasingly demanding more compelling user-friendly experiences, the hybrid cloud enables disguising of ever-greater complexity behind natural, uncomplicated interactions. A start-up, nViso, based in Switzerland, has developed software that provides emotion-measurement technology. They intended to empower financial advisors with client insight. Therefore, nViso developed a hybrid cloud-based solution that analyzes facial expressions.

This solution helps investors and their financial advisors understand what motivates them financially so that they can make better-investing decisions. The cloud-based resource can be instantly accessed by clients, regardless of locations or time zones.

5. Contextual variability

Hybrid cloud supports personalized experiences based on mobility and context-driven by users. For instance, a multinational banking and financial services business in Europe adopted a hybrid cloud to build a mobile app that allowed customers to experience multiple services on a unified platform and also make payments through their bank accounts.

6. Ecosystem connectivity

The adoption of hybrid cloud encourages ecosystem collaboration enabling wide-ranging communication and coordination with distributors, suppliers, agents, partners, financial advisors, and other stakeholders. Banco Santander has actively developed a growing fintech ecosystem through its venture capital fund. It offers access to its own global hybrid cloud infrastructure to its ecosystem.

Conclusion

Hybrid cloud is definitely driving value creation for banks across the globe. Bringing together the security of the private cloud and the agility of public cloud – the hybrid cloud offers tailored and personalized solutions that can drive operational efficiency, revenue growth, innovation, and ecosystem collaboration.

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