CLOUD TECHNOLOGY
Ahead in the Cloud Making the case for the use of cloud based services in banking, Miljan Stamenkovic, General Manager, MENA at Mambu highlights that its improved service and cost efficiencies will add positively to customer experiences as they seek greater transparency and on-demand services, and that it will provide a smart and secure environment for both them and banks too
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t’s estimated that cloud infrastructure accounts for one-third of banks IT spending. Will this proportion reduce or expand in the coming years? We anticipate the investment into cloud infrastructure will continually increase, driven by the growing risks associated with legacy infrastructures and the shift to digitally enabled financial institutions. In 2020 alone, cloud computing s p e n d i n g i n c re a s e d by 3 3 % ,
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predominantly driven by Amazon Web Services (AWS), Google Cloud and Microsoft Azure. These cloud service providers enable banks to access data storage and processing power from their own data centres dotted around the globe. After moving to the cloud, banks can always access their data online and use the cloud providers’ computing capacity when needed, instead of running their own servers all year-round.
Banking and Finance news in the MEA market
Is cloud-based computing becoming strategically important to banks and financial institutions? Banks and financial institutions accelerated their digitisation strategies during the pandemic due to the limitations of in-branch services and the changes in consumer behaviour seen in recent years. Customers are increasingly demanding fast processes, greater transparency and on-demand services that are delivered through a seamless user interface. Legacy banks have been facing a serious dilemma post pandemic: evolve or eventually become extinct. To stay ahead, many companies are using the principles of composability to secure banking licences and/or deliver a wider range of digital services; incumbent banks are taking note of neobanks because of their long-term threat and ability to adapt. In short, digital banks are becoming consumers’ primary financial providers at the same rate that traditionals banks are becoming secondary. According to the Global Digital Banking Index by N26 and Accenture, Saudi Arabia (54%) and UAE
