White Paper
A New Model for IT in the Age of Cloud Banking
March 18, 2019
The time has come for the traditional role of information technology (IT) in banking to transform. No longer are IT professionals expected to simply manage on-premises systems and servers. Today’s chief information officer (CIO) must look to outsource a wide variety of functions to the cloud, freeing up resources to focus on the rapid iteration of new products, services and processes, efficiently and competitively. Today’s IT must also engage at the earliest stages of all strategic decisions made throughout the organization.
It is of equal importance that IT begin to establish a true partnership with the business side of the financial institution (FI). In an age where customer expectations are rapidly changing, and financial consumers expect outstanding digital experiences and frictionless service at every step of the banking relationship, this means collaborating with the business and ensuring both business objectives and customer needs are driving the enterprise’s IT strategy and efforts.
Before your institution can begin transforming its IT role and structure to create a nimble and efficient organization, it must face down several daunting barriers to building a strong IT-cloud provider relationship. These include:

  • The FUD Factor: No one is immune to the fear, uncertainty and doubt (FUD). In an IT environment where career success and reputation were formerly measured by metrics such as computer room dimensions, the number of custom systems and staff size, change in and of itself can be a source of stress and apprehension.
  • Data Security Peril: Although cloud solutions built on best-in-breed platforms like Salesforce and AWS have over time successfully addressed lingering questions about whether they can offer a security posture that is equal to or better than on-premise systems, the general public continues to worry about the safety and security of their personal financial data.
  • Compliance Burden: As a highly-regulated industry, compliance is an expensive and time-consuming endeavor, and has only grown more so in the wake of the late-2000s financial crisis.
  • The Legacy Road: Unwinding a complex web of on-premises computer infrastructure that controls a multitude of diverse financial processes can be daunting. Yet the rewards of addressing this challenge are significant. By reducing the number of in-house hardware, systems and custom applications, IT leaders can significantly minimize redundancy and opportunities for errors and downtime.
  • Minding Your People: In-house talent can be employed more impactfully on new and exciting projects when obsolete systems are outsourced. Instead of running redundant overnight reports and batch processes, staff can work on developing new, innovative solutions to improve the customer experience on modern platforms that give you –and their future careers –a significant boost.
  • Breaking Down Walls: Any organization of a certain size runs the risk of having walls of inefficiency and concealment build up over time. Siloed departments tend to communicate with each other less often and less effectively. Myopic thinking and a glacial pace of change are the unfortunate hallmarks of such firms.
  • Fintech Myopia: Financial institutions aren’t the only organizations with blinders on. Sometimes, fintech innovators are so focused on presenting their unique product as the only solution for all problems, no matter how big or small, they don’t take the time to fully grasp the range of challenges and constraints a traditional, highly-regulated and immensely complex institution faces daily.

These challenges may seem discouraging, but there is a path forward –a new model that allows IT to drive customer engagement, efficiency and innovation in the financial services organization. It begins with a few key decisions geared toward designing a new technology platform in the cloud.

To learn more about these key decisions, the trends behind the evolving transformation of IT in banking, and strategies for leveraging the IT-cloud vendor relationship to achieve comprehensive digital transformation, download nCino’s complimentary white paper “A New Model for IT in the Age of Cloud Banking”.

  • Digital Transformation