It is no secret that life today moves faster than ever before. The digitalization of the world around us has led us to be more impatient, open to change and flexible.
This puts pressure on just about any company we do business with. Pressure for them to deliver fast but also to adapt fast as our needs change and develop. This is not only true on an individual level, it is affecting society on a larger scale as markets, businesses, even countries are also subject to this rapid change. Studies show that the average lifespan of company changed from approximately 60 years in the fifties to 18 today. One could argue that this is a direct result of companies that resist change and are left in the gutter while others proceed to adapt successfully. There is a key word to be found here and it is agility.
When thinking of industries reluctant to change I am sure banking comes to mind for a lot of you. Change is a hassle for these conglomerate giants and they have a history of moving slow. But the truth is even banks, or especially banks are subject to change if they want to survive the ongoing digital shift in our economy. Also, new actors like N26 and Tink are challenging the traditional banks by creating banking services designed around modern, mobile lifestyle.
In order to reach more agility the implementation of cloud services has been key for most industries. More than ever cloud services allow for more flexibility and the ability to scale any business rapidly, and to change with the needs of a fluctuating market.
In comparison to building your own infrastructure and having your software on premise, which is often a fixed solution that requires a lot of updates and maintenance. Cloud services allow for the flexibility that this day and age often requires. In the perspective of banking this might entail days when a particular bank sees an unusual large number of transactions or traffic. By using a cloud service at this point they are able to scale up their business by occupying more servers on that particular day while the next they can scale back to normal.
This is also true for adding or modifying features to their particular banking service. Most of us are used to see the services we use evolve rapidly to better accommodate the needs of our every day life. For example it’s been almost ten years since we started using Spotify, at the starting point the service was fairly basic in the terms that it allowed you to stream music your your computer and create playlists with that music. Today it has evolved to tailor playlists to your liking, suggest new music you might like and play music accommodated to the pace you run. The price you pay for the service is the same as 8 years ago but it has evolved to something better, and that is reasonable.
The banks have realized that the customers are asking the same thing from them in terms of banking service, thus started to move their services to the cloud to be able to accommodate change and development. While some argue that the risk of moving their services to the into the cloud increase the risk of theft and hacker attacks and trespassing the risk of becoming obsolete and irrelevant has become greater. In conclusion, there are still risks connected to moving banking services in the cloud, but it also gives you the agility to deal with those risks, whether they are societal, legal or financial.