Finextra Research hosted its inaugural Financial Cloud Summit at King’s Place in London on 2nd March 2023.
The conference focused on the application of cloud technology in the financial services sector, attracting over 200 technology decision-makers who gathered to address the cloud migration challenge and hear various speakers present actionable solutions to expedite their journey.
Below are highlights from key discussions that took place at the 2023 Financial Cloud Summit:
What does a successful cloud strategy, migration, and optimization mean?
Kicking off the day, former Dragons’ Den investor Piers Linney, entrepreneur and CEO of Moblox, set the stage by emphasizing the importance of cloud strategy, migration, and optimization. He shared insights from his extensive experience in banking and finance, addressing prevalent concerns he described as “FUD: fear, uncertainty, and doubt.”
Linney raised critical questions regarding cloud security, costs, and the timing of migration, explaining that change is now exponential rather than linear. He noted that customers are increasingly influencing how banks enhance value with their technology stacks, which should enable innovation rather than restrict it.
Successful cloud adoption will differentiate leading institutions from others. Establishing a comprehensive strategy and a robust migration plan will ensure a competitive edge, although he cautioned that software development is an ongoing process.
Is cloud necessary?
Discussing cloud strategy, Avinash Kumar, Product Director at Temenos Banking Cloud, referred to a study indicating that 72% of IT bank executives believe cloud technology supports their organizational objectives. He emphasized that the cloud enables differentiation, facilitates unique market propositions, and counters commoditization. Additionally, it offers predictable costs and reduces total cost of ownership, including operating expenses.
Kumar stated, “Cloud and SaaS are at the core of any new banking model,” and emphasized that banks must enhance revenue by exploring new business opportunities, achievable through the adoption of open technology that prioritizes security, scalability, and resilience.
How to ensure security with the cloud?
A panel led by Stewart Davies, Global SaaS Commercial Director at Temenos, and Andy Sturrock, CTO at Atom Bank, discussed organizations aligning their partners with their cloud strategies while prioritizing security.
Moderated by Finextra reporter Niamh Curran, the discussion focused on the outsourcing of data to the cloud and the balance of trust with cloud providers. Davies noted that building trust takes time and involves numerous considerations.
Sturrock acknowledged the inherent risks of trusting external organizations but highlighted measures in place to enhance confidence. At Atom Bank, they retain encryption keys for all data to ensure comfort in their relationships with cloud providers.
He elaborated on modern security practices, stating, “Security in the cloud requires a shift in mindset. Instead of relying solely on an external firewall, today’s approach assumes potential breaches and necessitates certificates and authentication among microservices and components. If APIs are managed appropriately, cloud security can be as robust as traditional methods.”
For more information about Finextra’s Financial Cloud Summit and to register for the 2024 event, click here.