Cloud services designed with banking in mind

Banks and wealth managers wanting to exploit the potential of the cloud to modernize their operations, platforms and infrastructure face highly specialized and demanding operational and regulatory requirements. So can the cloud be made to work for banking and wealth management? The answer’s yes. Avaloq is already providing specialised cloud banking services for some of the world’s biggest and most security-conscious financial institutions.

Cloud banking that ticks all the boxes

Generic cloud services can’t hope to meet the high standards of performance, security and compliance that are essential for banks and wealth managers. This is a specialized field, and you need to be working with a specialized partner that knows your business and understands your critical priorities.

Cloud banking services involve four layers of service delivery – Business Process as a Service (BPaaS), Software as a Service (SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS) . The base layer, IaaS, provides the fundamental cloud computing capability that supports the managed services above it.

Cloud banking is very different from older system deployment models. It allows computing resources to be shared and allocated dynamically, in response to real-time demand. It enables banks to avoid capacity constraints, giving them exactly the resources they need at any given time. If you gain more business, your operations automatically scale to meet the new demand.

Business Process as a Service

The full-stack solution that provides today’s highest service levels for cloud banking.

BPaaS

Software as a Service

Avaloq Software as a Service (SaaS) delivers the full set of services you need to make you more efficient and agile.

SaaS

Banking is moving to the cloud

The trend to cloud banking is accelerating year by year, as increasing numbers of banks and wealth managers move their operations, platforms and key parts of their IT infrastructure to cloud services. This chart, from IDC, illustrates the way more and more on-premises installations are being replaced by flexible, efficient and secure SaaS facilities.

Worldwide Enterprise Applications Revenue Share - Software as a Service (SaaS) versus On-Premises

Getting to digital

Creating the kind of digital experience that’s fit for the next generation is about much more than giving the front end a facelift. Banks and wealth managers need the right technology stack with an API-rich open banking architecture, a complementary ecosystem of fintechs and other partners who can integrate seamlessly using that stack, and an integrated data analytics platform that can utilize AI and machine learning to understand the customer every step of the way. Cloud banking platforms remove the need for radical, expensive and time-consuming changes within your organization and allow banks to sharpen their competitive edge by adopting digital innovations quickly.

Grow fast, change easily

Cloud banking services provide scale and availability for your operation, so that you can move fast whenever you need to. When you want to set up a new office, the heavy lifting needed to put the infrastructure in place has already been done for you. When you want to change direction, move into a new business area, or even scale back, the variable consumption model of cloud services gives you the flexibility you need, without the costs and hassles of maintaining legacy systems. Your operation can act decisively, with the speed and entrepreneurial flair of a start-up, while your teams enjoy the power to create, integrate and launch the latest client services – unconstrained but safe.

Boost efficiency

When you move to cloud services, you immediately reap the benefits of unparalleled scale and expertise. The right cloud banking services help you standardise and automate technology and processes faster than ever before, while ensuring that security remains a top priority. High performance and reliable service – with guaranteed SLAs – are yours, straight out of the box. The modular ‘as a service’ model means you can keep control of your cost base with capabilities and resources that are exactly aligned to your business needs. And, of course, you can free up working capital, as these services are recognised as operating expenses, rather than capital expenditure.

The key to agility and innovation

IDC’s recent study of wealth managers and private banks has shown that moving to the cloud is seen by many executives as the first, essential step towards operational agility, and, ultimately, as a powerful enabler for business innovation.

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Private, public or hybrid?

You will need a partner who has a deep understanding of your operational needs as a bank or wealth manager and who can provide you with the flexibility to offer the cloud layers you need, and to change these as required. There may be some parts of your infrastructure that must be kept in a private cloud and others that can be in a public cloud. Some functions may call for a hybrid of the two or may even demand an on-premises element. Whatever your specific requirements, transitioning from one model to another needs to be made just as painless as it can be.

Service without compromises

Banks and wealth managers need providers who understand that, for you, cloud banking must not impose restrictions and compromises. You need strict SLAs that guarantee the highest possible levels of 24/7 performance, bullet-proof security and rock-solid failure protection, alongside assured regulatory compliance and all the monitoring systems that are needed for the auditors to prove it. This isn’t about standard, generic cloud services. This is about a true banking cloud.

Work with the cloud banking specialists

The particular needs of banks and wealth managers are too complex for most cloud service providers to understand and satisfy. Special care needs to be taken when considering cloud options, and there are a number of key elements to watch out for.

Getting it right when you move to the cloud

For an in-depth look at your cloud options and what you’ll need to do to make the most of them, see this recent report from Deloitte.

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