Building societies need to compete for members with retail banks, often without the same access to funding. Digital transformation to secure cloud computing is the clearest path for building societies to not just keep up but lead the charge to deliver exceptional banking services that delight members.
In today’s fast-moving retail banking sector, customers have come to expect tailored services that are delivered when and how they need them. For building societies, this means delivering products through modern, user-friendly applications supported by robust, scalable and secure infrastructure platforms.
This may sound straightforward in principle, but in practice many building societies’ core systems have remained unchanged for several years. The FCA and PRA discovered during the financial crisis that some building societies were delivering platforms for the likes of mortgage and saving products sold to other building societies using the same infrastructure platforms as their core operations. This meant that, if the IT system was to fail, the domino effect would be catastrophic.
Changes in regulations – specifically the FCA’s FG 16/5 guidance – mean that building societies are no longer able to deliver platform products for other building societies. This increases difficulty for building societies, who must meet the same obligations with a fraction of the data processing power that the large high street retail banks have available to them.
Today’s hybrid cloud technology, when deployed and managed in partnership with an experienced secure cloud provider like Six Degrees, has the potential to transform building societies’ operating models and delight their members with tailored, easy to consume services.
Leveraging the time and resource-saving capabilities of cloud technologies will benefit building societies who want to be scalable going forward, enabling them to face an uncertain but exciting future with confidence in the infrastructure that powers their business model.
In this blog, we’ll show you how.
Cloud Transformation Drivers
Why are building societies moving in ever-increasing numbers to the cloud? Here are some of the key cloud transformation drivers we’re seeing in the market:
- Modern application delivery depends on a cloud model to provide the agility and processing power needed to delight users. By moving to the cloud, building societies can deliver an enhanced digital banking experience that provides members with the services they need, when and how they need them.
- Legacy on-premises and private cloud deployments are time and resource-intensive to support. Cloud computing enables building societies to reduce costs through resource and skills optimisation.
- Cloud deployments are inherently flexible and scalable, enabling building societies to adapt quickly to changing resource and capability requirements. This drives increased revenue growth through access to a more scalable and flexible platform.
- The retail finance sector has never been more competitive, with established names competing with progressive start-ups to gain new customers. Cloud technology enables building societies to gain a competitive edge by adopting new technological capabilities.
- Regulatory compliance is a non-negotiable for all building societies. Cloud technology makes it easier to achieve compliance by meeting data protection, security and statutory requirements.
- Building societies operate in an increasingly hostile digital landscape, where data breach can result in severe operational, financial and reputational damage. Cloud technology enhances security measures by storing valuable data and information in a secure location that is monitored and protected, 24×7.
As you can see, the cloud transformation drivers for building societies are compelling. However, there are lots of potential barriers to cloud transformations, many of which introduce risk if not managed appropriately when managed internally.
Is there another solution? Yes, there is.
A Springboard to the Cloud
Building societies could choose to work with specialist technology partners such as Six Degrees. We provide a springboard to the cloud through a unique approach that combines Microsoft Cloud Adoption Framework best practices with our own secure cloud expertise. And as an Azure Expert MSP and Microsoft CSP, you can be sure you’re in the best possible hands.
Six Degrees delivers a springboard to the cloud by moving legacy infrastructure and applications into our own data centres and Microsoft Azure cloud, migrating cloud-ready services straight to Azure cloud where appropriate, and managing them all centrally. This approach enables building societies to bridge the gap between their existing outsourcing arrangements and true public cloud service delivery.
How is this done?
Our Cloud Adoption Framework is based on the Microsoft Cloud Adoption Framework, which is proven guidance that is designed to help organisations to create and implement the business and technology strategies necessary to succeed in the cloud. Its Microsoft’s one stop approach for cloud adoption and sharing best practices. At Six Degrees we elevate the Cloud Adoption Framework through our industry-leading cyber security pedigree, ensuring risks and cyber threats are mitigated at every stage of our customers’ cloud transformation journey by incorporating security into our solutions.
You can learn more about our unique springboard approach by reading our new Cloud Transformation for Building Societies eBook.
Cloud Transformation for Building Societies
Specialist cloud technology providers like Six Degrees act as a bridge between all of the services building societies require today, and their future aims of becoming public cloud-ready. While no organisation can become cloud-enabled overnight, it can reach that goal faster if it chooses a provider that knows how to get there.
So, what’s the first step? We recommend kickstarting your cloud transformation with a Cloud Readiness Assessment. The Cloud Readiness Assessment is designed to help you understand your infrastructure and potential cloud adoption workloads. It follows the same Cloud Adoption Framework best practices we have used to help over 300 organisations with their cloud transformation strategies to date.
To kickstart your growth through cloud, schedule a call with our secure cloud experts on Cloud Professional Services.