Financial services sector set to embrace Cloud by 2015: Gartner

The financial services industry will be using Cloud services to support core banking systems such as data management by 2015, according to analyst firm, Gartner.

A global Gartner Executive Programs annual CIO survey conducted in Quarter 4 of 2010 found Cloud was the top priority for financial services CIOs.

In addition, 39 per cent of these CIOs expected over half of their transactions would be supported via Cloud infrastructure and software as a service (SaaS) in four years’ time.

The survey results were based on responses from 2,014 CIOs in 50 countries.

Gartner UK managing vice president, Peter Redshaw, who will be speaking about Cloud banking at the Gartner Symposium on 14 November, said in a statement that Cloud adoption in the financial industry may have been limited to non-core areas in the past but this was now changing to include services such as cash processing and transactions.

“Cloud computing, now in its early adoption phase in financial services, is mostly about efficiency – doing what it has always done, but at a lower cost,” he said.

“However, Cloud banking will be about using Cloud computing to explore services that were not previously economically viable such as reverse auctions and third-party core banking systems."

For example, banks could participate in reserve auctions when consumers want to buy a product, such as a credit card, that was personalised to their needs.

“Banks may also be able to compete against rivals for business, such as modifying mortgages, and harness the power of their own consumers via special versions of online banking,” he said.

Redshaw also provided an action plan for banking CIOs who were planning to roll out Cloud computing in their organisations.

  • Monitor the emergence of mature, financial services-specific Cloud strategies from vendors.
  • Construct a map of where Cloud services will be most appropriate for your specific organisation.
  • Understand the balance of drivers and inhibitors. An early indicator of a change in the balance will be the advent of Cloud service brokerages.
  • Investigate how Cloud banking can transform, not just enhance, your business.
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