Established financial services firms are facing unprecedented new challenges, ranging from increased regulatory scrutiny to cryptocurrency and a wave of financial technology (fintech) competitors. Those are among the reasons banks, brokerages, investment firms, and others in the business of managing money are marching deliberately toward the cloud.
Numerous forces are driving this migration, including better customer experience, mobile services, and more.
At the same time, the global pandemic has underlined the value of flexible infrastructure that can accommodate use surges and enable rapid application deployment. Cloud computing offers a path to agility by enabling firms to tap into technologies such as microservices, machine learning, cloud-native development platforms, and data lakes. These technologies can help enterprises speed the delivery of new services, support mobile transactions, and gain customer insights that open up new lines of business.
“A standard cloud platform creates an even playing field where companies can seamlessly integrate capabilities into existing applications, bolt on new features, and remove them when they’re no longer needed,” says Matt Milton, general manager of financial services in IBM’s North America region.
Platforms based on cloud-native technologies such as containers, microservices, and application program interfaces (APIs) give financial firms a way to make their business more agile and flexible at a cost that’s equivalent to or lower than that of legacy infrastructure