Lending Transformation in the Cloud

Adopting the Cloud is no longer a nice-to-have option for Financial Institutions (FIs) that want to lead by example; it is a requirement. The benefits offered by cloud-based platforms make them an essential solution for any bank aiming to offer a best in class product to its customers. As with all revolutions, changes are required in order to achieve the most effective outcome, namely (i) the way people work, (ii) the integration of new systems with existing platforms, (iii) an upgrade of risk and control mechanisms, (iv) buy-in from senior management, and (v) regulatory approvals. Banks should be aiming to embrace such changes, as the benefits by far outweigh the short-term challenges. Resilience, rich functionality, speed-to-market, and scalability are the key functional benefits of the cloud, coupled with the financial and human resource benefits. As such even the regulators have focused on the use of cloud and more specifically on the areas of critical functions, audit rights and reporting, business continuity, exit and resolution plans and concentration risk. Regulatory bodies have also initiated the adoption of the cloud having evidenced its benefits and therefore will be moving the industry towards solutions which allow them to effectively regulate and enhance transparency across the financial services sector.