For Banks to Compete In the Cloud, They Need People

During the epidemic, the banking industry’s shift to digital banking solutions has put technology in the limelight. The cloud’s power has never been more apparent than it is right now. According to a JMR Infotech study, 49 per cent of banks have transferred a significant amount of their workloads to the cloud, compared to 33 percent of firms across all sectors in the same period. It’s fair to assume that practically every bank is either in the process of moving to the cloud or has plans to do so in the near future.

According to a further JMR Infotech study, organizations who invest in strategic technology, such as the cloud, see double the revenue growth as those that do not make such an investment.

However, it is also evident that the cloud, on its own, will neither enhance a bank’s performance nor provide a competitive edge to the institution. According to the results of our most recent cloud study, just 35% of banks have realized the full value of their cloud investments as anticipated. Those who have achieved successful cloud migrations—those who have discovered the benefits of increased organizational speed and agility as well as lower costs—have focused not only on cloud technology but also on the people, skills, and ways of working required to realize the full potential of cloud computing.

So, what distinguishes the successful one-third of the population? What is it that they are doing differently?

Every tech challenge is a people challenge.

Simply stated, these leaders understand that people and their habits of working will either serve as catalysts or as roadblocks to any technological transition. In the same way that the cloud is the key to unlocking value in your organization, your people are the key to unlocking value in cloud computing.

Beginning with the technical abilities required for cloud migration and Oracle digital banking experience, one of the most pressing concerns for CEOs when it comes to cloud transformation is a lack of technological capabilities across the business. Cloud skills shortages are reported by 85 per cent of IT executives as being substantial enough to cause delays in their cloud initiatives and with OBDX.

Talent in the technology industry is in limited supply and high demand. Financial services organizations have struggled to recruit new employees with the necessary digital competence, especially Millennials.

Nonetheless, it’s vital to keep in mind that what’s genuinely lacking here are abilities rather than individuals themselves: Increasing cloud capabilities at a company does not have to be limited to employing new employees. Developing cloud talent inside the organization will be a critical strategy for forward-thinking banks, given the current scarcity of in-demand cloud capabilities.

The human aspect of the banking industry’s rush to the cloud begins with a scarcity of cloud-related expertise. There’s more to it, however.

The cultural keys to unleashing cloud performance

Creating business value from cloud investments requires the participation of employees from all levels of the organization, not just those in information technology. This is due to the fact that realizing the full potential of the cloud requires transforming every aspect of the organization and its digital banking solutions—not just once but on a constant basis as technology develops. Cloud transformations are most effective, according to the statistics, when the whole C-suite, rather than just the CIO or CTO, is involved in the process of driving the transition.

This is a massive change management task, but it doesn’t rule it out as a possibility in the near future. We have found two characteristics of a company’s employee culture that make a significant impact.

A growth mindset is characterized by the desire to try new things, learn from mistakes, and make adjustments in order to develop.
Lifelong learning—the concept that individuals may learn practical new abilities throughout their lives, rather than only while they are young or in school, is gaining popularity.

It will be very difficult to realize the full potential of the cloud unless and until the workforce is given the opportunity to learn and develop.

The cloud as a workforce catalyst

Despite the fact that considerable progress has been achieved in these areas throughout the sector, many banks are still battling with old technology and legacy personnel processes. Millennials, who are now the largest generation in the economy and who will account for 75% of the workforce by 2030, are, however, having difficulty finding jobs in the banking industry as a whole despite recent improvements.

But in order to get the full advantages of cloud computing, banks will need to rethink all of their people practices, including how their organizations are formed, how their people are led, how work is managed, and how people learn on a daily basis.