‘More financial institutions focus on the shift to cloud’

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The shift to the cloud is of the utmost importance for financial institutions, as part of the digital transformation, according to research by F5.

The Financial Services edition of the 2020 State Of Application Services survey by F5 is published. The edition shows that six out of ten companies (60 percent) surveyed consider public cloud platforms “strategically important” for the next five years as part of their digital transformation. Last year it was only 49 percent. The shift to public cloud is seen as the industry’s “most important strategic priority.”

“The idea that financial services applications would be the slowest to move into the cloud has been clearly disproven”, says Lori MacVittie, Principal Technical Evangelist at F5. According to MacVittie, on the other hand, we see the industry going ‘all in’ on the adoption of multicloud as organisations seek to accelerate the pace of their digital transformation and implement applications for better customer experience.

“Ultimately, financial services organisations that face growing competition from digital challengers are turning to the cloud to meet the needs of customers who now expect a seamless fintech service.”

Security problems

Nevertheless, many companies are worried about potential security problems. Only four in ten companies have confidence in their ability to stop cyber attacks targeting the public cloud infrastructure.

Companies also frequently encounter problems managing their applications in a multicloud environment. These challenges include applying consistent security policies to all their applications, migrating apps, visibility, and optimizing performance.

Open Banking

The survey also shows that many businesses are focusing on open banking. Almost half have already implemented open banking or plan to do so in the near future. Of the companies that have opted for open banking, more than two-thirds use API gateways that help them to share data with partners securely.