There are multiple technologies as well as business drivers which are accelerating the adoption of the cloud.<\/p>\n
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- Cloud-based infrastructure gives superior cost savings and flexibility in terms of scalability on demand. This cost advantage has dramatically enabled the startups to compete on par with larger incumbent players, as is evident in a large number of neo banks.<\/li>\n
- Cloud-based SaaS gives the potential for better integration with Fintech offerings and helps leverage technology better, enabling the launching of newer service lines and superior customer experience.<\/li>\n
- As the cloud offerings mature, they offer assured service standards, giving the end users the comfort to migrate.<\/li>\n
- Once effectively migrated and configured, a cloud-based ecosystem might be more resilient and offer better disaster recovery outcomes.<\/li>\n<\/ul>\n
Cloud Adoption Challenges for Legacy Banking Applications<\/strong><\/p>\n
While the benefits of cloud migration are increasingly becoming evident in one way or another, migration to a cloud-based infrastructure and operational model comes with its own set of challenges that need to be addressed effectively to ensure the success of the migration.<\/p>\n
Some of these can be categorized as,<\/p>\n
System availability:<\/strong> While a transition from an on-premise to a cloud-based model is done, it is essential to ensure there is no impact on the customer experience regarding availability and performance, especially in the case of business-critical applications like Core Banking applications.<\/p>\n
Data Consistency:<\/strong> Data is the most sensitive element of a BFSI ecosystem, and a major transformational program such as cloud migration can get quite challenging in this aspect. The various data sets such as product data, account data, and historical transactional data need to be carefully backed up and migrated onto the new cloud infrastructure. This whole process should not open any vulnerabilities in terms of access and obfuscation.<\/p>\n
Security:<\/strong> In terms of the financial risks involved, Security ranks high for any BFS System. Compliance with the mandated security standards is a strict requirement. The system should also be safeguarded from any external attacks and insecure APIs.<\/p>\n
Technological incompatibilities<\/strong>: Cloud migration can pose significant integration challenges with the peripheral applications and any co-existing legacy infrastructure.<\/p>\n
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