Cloud migration has become a significant focus within the financial sector, as both traditional banks and emerging fintech companies transition to cloud services to achieve scalability and agility while enhancing their operations.
As new cloud strategies develop, the migration process grows increasingly complex due to regulatory fragmentation, a variety of cloud service providers, and distinct approaches to the transition. The second stage of the cloud summit explores how financial institutions are managing their cloud migration journeys.
Madhvi Mavadiya, Finextra’s head of content, moderated a discussion featuring Neil Robinson, the Senior Director of Operations and Change Management at OakNorth. This conversation centered around OakNorth’s transition to the cloud using Amazon Web Services (AWS).
Notably, OakNorth became the first bank in the UK to fully operate on the cloud in May 2016. Through its partnership with AWS, the bank crafted its cloud platform effectively. Robinson highlighted the significant benefits of operating on AWS, such as increased flexibility and the capability to rapidly introduce new products to market. He noted, “The flexibility and ability to change is definitely high on the agenda. AWS also allows you to test and learn more quickly, enabling you to fail fast and move forward.”
Robinson emphasized that AWS was an ideal choice for OakNorth due to its strong security standards, facilitating cross-regional operations and maintaining resilience. He pointed out that operational resilience can be more complicated for larger, older banks, while OakNorth, as a newer institution, proactively integrated resilience into its offerings.
Discussing the role of regulatory bodies, Robinson mentioned that the FCA is recognizing the industry’s evolution. He stressed the importance of working under regulatory guidelines to ensure products and services meet expected standards within the cloud framework.
On the topic of cloud versus on-premise security operations, Robinson explained that cloud environments can invest more heavily in security measures, often leading to superior standards. He highlighted the importance of evaluating whether to develop solutions in-house or source them externally based on skill sets and the ability to create effective offerings.
Defining successful cloud migration in terms of agility, scalability, and disaster recovery, Robinson identified customer outcomes and digital evidence as key indicators of success. He underscored the significance of rebuilding core banking infrastructure with operational resilience as a priority.
In the event’s second session, Paige McNamee, a senior reporter at Finextra, led a discussion on enhancing customer experience while meeting demands. The panel included Ange Johnson De Wet from Lloyds Banking Group, Monica Sasso from Red Hat, and Martin Bradbury from Dynatrace.
The session addressed how financial institutions can balance the need for migration without disrupting data availability or risking breaches while also pursuing loyalty and personalization initiatives. Johnson De Wet emphasized that “everything starts with the customer,” noting that services should adapt to meet user expectations shaped by their experiences with both financial services and social media.
Sasso stressed the demand for speed and transparency in banking experiences, while Bradbury added that customers expect consistent service availability without downtime.
A poll conducted during the session revealed that 43% of participants had reached out for customer experience feedback within the past month. Johnson De Wet labeled this outreach critical, and Sasso encouraged engaging diverse demographic groups for feedback, while Bradbury highlighted the need for banks to shift from reactive to proactive approaches.
At the session’s conclusion, attendees were reminded that all customers, regardless of their role, seek reliability and security in their banking experiences. The panel discussed the merits of a multi-cloud strategy for large banks, especially considering past public cloud outages that underscored the importance of resilience, though balancing this with complexity is essential.
Sasso noted that while there isn’t a one-size-fits-all model for successful cloud migration, strategic planning for both public and private clouds is vital to avoid missteps during the transition.
Johnson De Wet echoed this sentiment, advising that banks must understand their current state and anticipate changes in customer experience associated with migration. She emphasized the need for banks to adopt an agile mindset and think long-term by planning for multiple releases.
Bradbury reinforced this by discussing dependency as a major challenge, asserting that effective communication strategies and business transformation are essential. Sasso cautioned against blindly following AI trends, advising that if the underlying algorithms and business value of a product cannot be clarified, it should be reconsidered.
In closing, Bradbury pointed out that misunderstanding customer needs can lead to larger issues, suggesting that banks should prioritize customer insight before initiating a migration process.