Proliferation of Digital Transformation in Financial Institutions
In recent years, the rapid advancement of digital implementations such as cloud technology has spurred structural changes in financial institutions – where business models and architectures are re-evaluated and re-imagined to adapt to today’s digital reality. Coupled with a COVID-19 pandemic-stricken business landscape, digital business models became an imperative instead of an option – forcing many financial institutions to transition to cloud operating models to sustain top-line revenue growth and innovation.
Leveraging on the changes in financial institutions, there has been a proliferation of solution providers catering to the needs of financial institutions – developing digital solutions that can bridge the gaps between legacy and new infrastructure, reduce frictions between value chains, as well as innovate new cloud-based implementations that can handle multi-faceted functions such as data management, compliance requirements, and detect banking threats.
Adoption of Cloud Solutions to Enhance Business Performance
The benefits of digital transformation and cloud adoption in financial institutions are substantial – providing greater speed, scalability, and security for the financial institution, while offering greater flexibility, remote capability, and integrated banking services for customers.
For instance, financial institutions can now transcend from business model constricted by legacy systems and segmented databases to seamlessly integrating functions from loan applications, customer relationship management, and automated reporting through various application programming interfaces (APIs). From an agility standpoint, because the cloud is built for the digital marketplace, it’s easy to develop new features and deploy them in a shorter timeframe. Financial institutions can also easily add new servers to support popular features and services.
Reported in IBM’s Banking on Open Hybrid Multicloud survey 2020, 91% of financial institutions are actively using cloud services today or plan to do so in the next nine months. Gartner also forecasted that the move to cloud technologies can introduce important capabilities to access and mine data more prolifically, pushing revenue for cloud computing industry up 50% to $364 billion in 2022.
Re-imagining Systems with Cloud Solutions
For financial institutions that have yet to deploy cloud technologies to transform their banking solutions due to complexity, security, and governance risks, it is important to evaluate the myriad of solution providers to select one that fully understand the front and back-end specifications of the institution to deliver added business value.
One of such end-to-end solutions that can support banking transformation is Fern Software’s Baytree that comprises a holistic suite of features from contact management, flexible loan portfolio management, feature flexibility, plug-n-play modules, workflow automation and instant credit scoring analysis. Baytree is being built in partnership with Salesforce and offers an enterprise-grade platform. With a people-based product design and a cutting-edge technology infrastructure, financial institutions can easily manage loan portfolios and comprehensively track all interactions with clients and businesses. Financial institutions can also take advantage of the Salesforce ecosystem and the availability of 10,000 apps in the Salesforce AppExchange if they need some specialised applications – such as Quantum AI. Docusign, etc.
In today’s financial industry landscape, more leaders are recognising that cloud technology is more than just an alternative to on-premises data storage; financial institutions now leverage cloud to improve services at a lower cost and faster speed. It is now imperative for financial institutions to re-imagine their systems and infrastructure with cloud to create new business frontiers, drive business performance, and boost shareholder returns.
