Is the Cloud tunnel-vision holding banks back?

In recent years, the banking industry has been undergoing a significant transformation as it moves towards digitization and automation. Cloud computing is one of the most significant drivers of this transformation, providing a range of benefits including cost savings, scalability, and agility. However, despite the benefits, many banks continue to suffer from what is known as ‘cloud tunnel vision.’

Cloud tunnel vision refers to the phenomenon where banks focus solely on the technology aspects of the cloud, such as infrastructure and platform, while ignoring the broader business and operational implications. This narrow focus can result in missed opportunities for innovation and cost savings, as well as increased risk and security concerns.

One of the key ways cloud tunnel vision can hold banks back is by limiting their ability to innovate. Cloud computing is more than just a technology, it is a platform for innovation. Cloud-based applications and services can be developed and deployed faster, enabling banks to deliver new products and services to their customers more quickly. However, if banks are too focused on the technology aspects of the cloud, they may miss out on these opportunities for innovation.

Another way cloud tunnel vision can hold banks back is by increasing their risk and security concerns. The cloud brings many security benefits, such as increased data redundancy and disaster recovery capabilities. However, banks need to be aware of the risks associated with cloud computing, such as data breaches and cyber-attacks. If banks are too focused on the technology aspects of the cloud, they may overlook these risks and fail to implement appropriate security measures.

Cloud tunnel vision can also limit banks’ ability to achieve cost savings through cloud computing. While the cloud can provide significant cost savings through economies of scale, many banks fail to take advantage of these savings because they are too focused on the technology aspects of the cloud. For example, they may focus on the cost of infrastructure and platform services, while overlooking the potential savings from reducing operational costs, such as IT support and maintenance.

To avoid cloud tunnel vision, banks need to adopt a more holistic approach to cloud computing that considers the broader business and operational implications. This approach should start with a clear understanding of the business goals and objectives, followed by a thorough analysis of the potential benefits and risks of cloud computing.

Banks should also consider partnering with experienced cloud service providers who can provide guidance and support in developing a comprehensive cloud strategy. These providers can help banks understand the full range of benefits and risks associated with cloud computing, as well as develop a customized cloud strategy that meets their unique business needs.

In conclusion, cloud tunnel vision can hold banks back by limiting their ability to innovate, increasing their risk and security concerns, and preventing them from achieving cost savings through cloud computing. To avoid cloud tunnel vision, banks need to adopt a more holistic approach to cloud computing that considers the broader business and operational implications. This approach should start with a clear understanding of the business goals and objectives, followed by a thorough analysis of the potential benefits and risks of cloud computing, and partnering with experienced cloud service providers who can provide guidance and support in developing a comprehensive cloud strategy.