Home » Technology News » Banking undertakes its journey to the cloud without vertigo | Digitization | Technology

Banking undertakes its journey to the cloud without vertigo | Digitization | Technology

Banking undertakes its journey to the cloud without vertigo |  Digitization |  Technology

There is no banking group that has not understood the necessary transformation of the sector. Traditional entities now want to become digital natives. They have assumed it, each in their own way and at their own pace, because it is not an option. The financial market has turned towards an extremely competitive environment with the arrival of new players: neobanks, fintech… This forces us to forget the business format of always and bet on a necessary transition towards a technological ecosystem in the cloud so as not to be left behind.

The challenge is tempting because it is interesting and advantageous, but also very demanding. Even more so if one is profane in the universe cloud. “We speak, on most occasions, of old technological infrastructures and obsolete systems, which represent a real burden when undertaking the so-called journey to cloud and that slow down this essential transition, already costly and disruptive in itself. This move to the cloud is usually understood as a migration of information technologies. However, many times it goes much further”, explains José Manuel Pérez Bajo, Banking partner at NTT DATA Europe & LATAM.

The multinational, specializing in information technology, has developed a set of solutions and tools that help simplify such a “compulsory” process, clarifies the expert. Among these, his technical portfolio includes Orchestracloud-native digital banking platform built on a scalable architecture; Dedalow for Open Banking, to facilitate the creation of software; Eve, a conversational artificial intelligence solution or Kliquinwhich facilitates cloud deployment and automation of trading platforms like Murex.

The future of banking is in the ‘cloud’ work environment. Outdated and legacy technology systems are a drag against competition from digital native banks

José Manuel Pérez Bajo, Banking partner of NTT DATA Europe & LATAM

Executing that step, from traditional banking to a modern financial proposal, is a reengineering job that NTT DATA knows well. In Spain alone, some 17,000 workers are on staff, part dedicated to this task “which allows the cloud to be monetized faster, already in the initial stages without having to wait for everything to conclude and all operations have been transferred, also avoiding unnecessary risks” , emphasizes Pérez Bajo. To do this, the firm offers a migration based on its two main capabilities: first, the identification and management of the project from its adoption approach, given that “each entity requires its own tailored suit, since no two cases are the same” , affirms Pérez Bajo. The migration approach is also based on a gradual adaptation, “based on the testing of each step through pilot programs that allow minimizing risks as progress is made. It is a long-term job that is not completed overnight and that is why it is necessary to have an entire ecosystem of technological partners that provide accelerators, innovation and capabilities”, indicates this expert.

Four great benefits

From the technology company they consider that following the appropriate roadmap guarantees four benefits: scalability, access to innovation, agility (when launching new products or services) and cost reduction. And, logically, the challenges they pose are paired: adaptation of the bank’s applications -which can range from minor tweaks to a task of refactoring either re-architecturingthe interoperability required during the necessary time in which both systems coexist, the legacy and the cloudapart from the temporary cost that it implies, since it can be a matter of months or years.

At NTT DATA they are clear that this transition is not only technological, but also requires a complete change of thinking. In any organization moving towards environments cloud it is necessary to undertake a process of reskilling of talent. “In the market there is tension for human resources; Apart from capturing the professional, you have to be able to retain him. That is why banks can no longer function as before, working everything from behind the scenes, and they have to resort to an ecosystem of partners hyperscaler, sectors and service companies specialized in the journey to cloud. Strategic collaboration is key”, explains José Manuel Pérez Bajo.

Trends are moving towards a focus multi-cloud“where entities have a main cloud and use other alternative clouds for certain areas such as advanced analytics, data or work, thus avoiding the vendor-locking”. At the same time, in NTT DATA they outline another latent preference: the cloud hybrid, which combines the public cloud, in external infrastructures, with the private cloud, in its own. “This trend is absolutely linked to security. With the cloud hybrid, entities can balance which processes they execute in their own infrastructures and which in public infrastructures. Security is fundamental throughout this path”, indicates the banking partner.

More recently, the brand has begun to offer strategies, approaches and services of green cloud to his clients. The commitment to sustainability is a trend in the main entities of the sector. NTT DATA now adds to its experience this commitment to sustainability and efficiency with solutions that take care of the environmental footprint.

Modern entities, not only digital

Banks can no longer postpone their necessary journey to the cloud, but they can manage to do it in a simplified and, at the same time, accelerated way. This way they will make this transfer profitable before. “Talking about the digitization of the sector falls far short. The spectrum is much broader, since it involves far-reaching technological changes that allow us to speak of a complete modernization of financial entities”, considers José Manuel Pérez Bajo. At NTT DATA they are convinced that this transformation of the banking sector has only just begun. “Very relevant and innovative steps have already been taken, but in the next two to four years we are going to see a generalized commitment to the transition to the cloud throughout the banking sector,” anticipates this expert.

Don’t Trust On this News and Website Maybe it’s Fake

– Article Written By @Mamen Lucio from https://elpais.com/tecnologia/digitalizacion/2022-05-03/la-banca-emprende-sin-vertigo-su-viaje-a-la-nube.html

Will Hotson