Cloud-Enabled Core Banking Why Now is the Right Time to Act
Cloud-EnabledCore Banking The time is now for banks to capitalize on the many benefits that can be achieved by running Core banking solutions in the cloud.This white paper explains why. Topics include recent increased confidence in cloud strategies; a definition of what cloud-based core banking means; reasons/use cases for moving to cloud-native core banking and migrating to a cloud-enabled core; and a discussion of how banks can make the move to a cloud-based core.This white paper is part of a seriesof FIS™white paper publications regarding core banking modernization trends and topics.Putting Your Core in the Cloud –Why Now?Timing is everything when designing solutions for banks. While the quality of a solution greatly determines its strategic success, timing can be at least as important. Here we consider whether the time is right for a bank to migrate its core system to the cloud –and if so, why.This year, Amazon Web Services (AWS) celebrates its twelfth birthday, while Microsoft Azure turns eight. In this relatively short timeframe these two companies have become the universal gold standard for cloud-based solutions. Major companies, including Netflix, Adobe, Apple, Samsung, BMW, and Facebook have all adopted cloud in a big way. However, even five years ago, the mere mention of a cloud-based core solution in the boardroom of a major bank would probably end a meeting early.For many years banks have used the cloud for non-criticalsystems,such as email, customer relationship management, and application development. But they just weren’t ready to discuss moving their core systems to the cloud. Instead, they relied on the trusted strategy of building out their bank IT on bank-owned hardware in bank-owned data centers. So what’s changed?
