It’s time to get your head in the cloud

The banking industry is one of the most regulated in the world, which makes it challenging to keep up with customers’ digital needs.

It’s time to get your head in the cloud

Customers demand from banks the same tailored, real-time, and multi-channel communications they have become accustomed to in other aspects of their lives. This means that digital innovation has become a matter of survival. Banks need to digitally transform their business models to respond effectively to rising customer expectations, while also maintaining regulatory compliance. At FICO, we believe the best way for banks to balance both is with cloud-based technology.

Adopting the cloud doesn’t mean compromising on security, though. While there are no-go areas in some core banking functions, the widely-held view that banks can’t touch cloud computing technology is false. Across most geographies, a secure, hybrid cloud architecture exists that can withstand the scrutiny of the toughest security accreditation standards.

What are the key benefits?

Cloud solutions are rapidly deployable and more flexible than traditional alternatives. A recent study by EY showed that, behind more attractive fees and rates, a better online experience and functionality is the most important element of a customer’s experience with their bank[1]. In today’s mobile-driven economy, that means embracing applications – a process made much easier by the cloud.

Cloud technology is cost effective, too. That’s why FICO Customer Communication services have been at the forefront of our cloud-based offering. From two-way automated voice, text, and e-mail notifications to payment reminders and online affordability calculators, several FICO customers are moving their communication applications to the cloud. This enables flexible expansion, faster time-to-value, and rapid deployment of new analytic capabilities.

Early adopters of FICO cloud technology are already seeing success. Consultancy VITALIS has developed an advanced anti-money laundering (AML) solution, which is hosted in the cloud by banking association SIBTEL. In the long term, the solution will be used across Tunisia – with four major banks currently piloting it – to ensure compliance with AML regulations.

“Many Tunisian banks have a small compliance team of just one or two people,” said Monder Haouas, CEO of VITALIS. “Outsourcing hosting, configuration and support services to a cloud-based solution is an excellent opportunity that allows member banks to focus on their operational business.”

Originations is another area where FICO has seen an uptake in its cloud-based products. That’s because, in the cloud, the potential IT and business savings gained by deploying originations solutions are further multiplied. Companies are then also able to shift IT resources and data centre space to other areas of the business.

 

Hybrid cloud from AWS

Our goal at FICO is to democratise analytics and enable organisations to harness the power of analytics-based decisioning. This is a process driven by cloud computing, and that’s why we’ve recently partnered with Amazon Web Services (AWS). AWS offers a hybrid cloud architecture that is not only affordable, but can also withstand the scrutiny of the toughest accreditation standards, such as PCI and ISO27001.

It is not, therefore, just a good idea for banks to embrace the public cloud – it is already happening. The cloud can enable up-to-date customer services by minimising operating costs and accelerating the time-to-market for new technologies. So, the real question is: isn’t it time you got your head in the cloud?


[1] http://www.ey.com/Publication/vwLUAssets/ey-the-relevance-challenge/$FILE/ey-the-relevance-challenge-2016.pdf