Banks embrace cloud computing to streamline operations

January 12, 2015

The banking industry has been one of the top sectors to embrace cloud computing in its daily operations. Chief executives of major global banks depend on cloud solutions for all kinds of hugely important funds and client information. The widespread adoption in the industry, which involves plenty of private data, affirms that business leaders throughout the world are gaining comfort with cloud security measures.

While cybersecurity continues to be a key issue, as seen with the recent bitcoin hack, IT managers and tech engineers are working on security advancements that could further encourage the spread of cloud computing. In the meantime, more and more banks are taking advantage of the technology.

ABN AMRO signs multibillion-dollar deal with IBM
Last month, Netherlands-based bank ABN AMRO secured a 10 year, multibillion dollar deal with IBM, which will manage the firm’s IT infrastructure for its global operations. The agreement includes a private IBM cloud system that will aim to standardize and simplify the bank’s IT department.

The bank is committing to the cloud optimization so it can streamline operations, further evolve its technological offerings for business partners and boost service quality.

“With this agreement we will further speed up the transformation of ABN AMRO enabling the latest technology and services,” said Piet Bil, IBM managing director for the bank. “Through our continued partnership, ABN AMRO will be able to evolve its IT infrastructure with new capabilities that leverage IBM’s investments in cloud, as well as analytics and security.”

Research indicates greater cloud potential in financial sector
The Aite Group, an independent research and advisory firm, recently conducted a survey of 29 senior technology executives from financial institutions. The survey found that 50 percent of respondents believe they are likely or highly likely to use private cloud computing services in the next 24 months, according to Forbes.

Cloud computing has risen to the forefront of the global banking sector’s daily operations, the news source reported. Bankinter, the sixth largest bank in Spain, take advantage of Amazon’s cloud service to run credit risk simulations in 20 minutes, compared to 23 hours before using the cloud. Zitouna Bank in Tunisia has also reaped the benefits.

“Our aim is to provide a diversified portfolio of modern banking services to enterprises and individuals and establish ourselves as a leader in Tunisian banking,” Lasaad Jaziri, CIO for Zitouna Bank, told Forbes. “IBM’s cloud capabilities will help us roll out a wider range of services and products, such as new mobile and Internet banking services, while also improving efficiency of internal banking processes and reducing our operational footprint.”