This might seem like a silly question to some, but the reality is that there is a perception within the financial community that cloud is not right for some aspects of banking and equipment financing. This perception seems to get compounded with the size of a bank or the net asset value of the finance portfolio. But just as consumer banking has rapidly adopted mobile and cloud-based solutions for everything from deposits to money transfer, a time is quickly coming when financial institutions will look for the best solutions both from a cost and reliability perspective which will drive more technology buy decisions to cloud-based options.
Moving to Public Cloud. This past week, Australia’s largest financial institution, the Commonwealth Bank of Australia (CBA), announced that it is driving toward having 95% of all its technology applications to be moved to the public cloud. This comes just a year after the National Australia Bank (NAB) announced it was moving its core banking to the public cloud and has been a frequent success story for AWS. While Australia has always been a leader in technology adoption (remember they were early adopters of contactless payment and cardless ATMs), what this does show is the leading edge of much broader adoption of banking solutions leveraging the cost-efficiency and resilience that comes with public cloud offerings.
CBA’s chief executive, Matt Comyn, commented that the decision to move to cloud would come with lower running costs and “lower costs to compete” but would also boost resilience which was now more important than ever given CBA’s 7 million digital customers, around 6 million of which used the bank’s app. In a day and age where competition is at an all-time high, anything that can provide a competitive edge is important. This move to embrace public cloud shows CBA and NAB believe this will give them a competitive edge and free up resources to focus on other aspects of their business.
Cloud Strategy. These banks are not alone. In a recent “2019 State of the Cloud” report published by Flexera, they noted that 84% of enterprises have a multi-cloud strategy heading into 2020 and that the #1 priority among those enterprises was leveraging cloud for cost optimization. The impact has been felt around the globe. In July 2019, Information Week published an article titled “Banking on the Public Cloud” which stated “Big banks that have been willing to begin the cloud journey (such as ABN AMRO in Europe and Citibank in the U.S.), have been rewarded with lower costs, faster innovation and improved customer satisfaction.”
What is most important for banks is providing the best possible customer service while keeping overall cost as low as possible. For the equipment and asset finance industry, this might be even more important as any capital invested needs to provide a return. This is why we at IDS have created the IDScloud solution. The goal was delivering the same world-class technology our customers have come to expect in our InfoLease and Rapport offerings, but in an easy-to-consume, pay-for-what-you-use model. It is also why we have subjected this solution to rigorous security audits and have received our SOC2 type II and SOC 3 security attestation.
We believe that IDScloud will give our customers the full lifecycle asset finance solution they need to be competitive in the equipment and asset finance market through the public cloud which provides the cost savings, resiliency and scale needed to win.
Eldon Richards, Chief Technology Officer
Flexera RightScale – 2019 State of the Cloud
Information Week – Banking on the Public Cloud?