With the latest innovation in IT, financial institutions are turning to the cloud in order to streamline their banking infrastructure. The benefits for banks that are serious about moving into the cloud and gaining access to a world-class banking cloud solution and service are many. Banks that use an IT infrastructure consisting of physical, logical and virtual components will see a dramatic reduction in their IT costs. By reducing IT costs they can invest more of their operating budget into other areas and decrease the need for additional personnel to manage the banking cloud.

These tips are designed to help banks begin the process of moving to the cloud and to better understand some of the challenges that they will face in transitioning to this new technology. We have distilled these tips into three key points that banks should consider making the move easier and more effective. The three tips are:

It is important for banks to choose carefully when selecting a cloud provider. There are many providers who offer low cost cloud solutions for financial firms, but they fail to provide the depth and breadth that a highly customized bank solution can provide. When selecting a provider for your cloud service, it is critical that you work with a provider who can offer a deep and rich technical support for your needs and standards. There are many banks that have experienced IT departments with many years of experience who can offer their technical expertise and help you make the right choices when evaluating and selecting the right cloud provider.

It is also very important for banks to develop a strong IT culture. The IT staff must be made aware of the cloud-based opportunities available to them. If employees feel as if they are being pulled away from core banking business, they will resist the idea of using cloud technology and it may even lead them to consider moving back to their traditional desktop machines. The first step for banks to take when making the transition to the cloud is to clearly define the new goals and metrics by having everyone involved in the project sign off on the plan. If the decision is based on market sentiment then it is important that the IT team is included as well. It is imperative that the focus remains on the outcome that the new products will provide rather than the short-term savings that some customers may be looking for.