# A Cloud Migration Guide for Financial Institutions Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-08-19 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Banking in the Cloud: Navigating Security & Transition Meta Description: Learn how migrating to the cloud can future-proof your business, enhance security, and meet consumer demand in the financial services industry. Find out more URL: https://financedigest.com/a-cloud-migration-guide-for-financial-institutionshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-1408906928-1736815432189-compressed.jpg) ![Bucky Porter, financial services industry analyst for Windstream Enterprise](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/bucky-porter-450x673-1736815432212-compressed.jpg) _By_ **_Bucky Porter_** _, financial services industry analyst for_ [_Windstream Enterprise_](https://www.windstreamenterprise.com/) **_It’s not a matter of if but when banking will move to the cloud. Here’s how to ensure a smooth, secure transition_** Recently I had the chance to look on as a couple of banking [technology execs grilled a panel representing more than 10 of the biggest names in the core banking software business](https://www.financedigest.com/7-ways-cloud-technology-can-transform-business-finances.html "7 ways cloud technology can transform business finances"). What struck me was how the questions they fired at the panelists kept returning to one issue: [cloud migration](https://www.financedigest.com/financial-services-industry-blazes-the-trail-for-cloud-migration-post-pandemic.html "Financial services industry blazes the trail for cloud migration post-pandemic"). The keen interest in cloud migration — and the security issues it raises — is evident [across the world of banking and finance](https://www.financedigest.com/700000-employees-across-the-uk-have-access-to-fair-finance-will-reach-one-million-employees-in-2017.html "700,000 Employees Across The UK Have Access to Fair Finance, Will Reach One Million Employees in 2017"), from boardrooms to the C-suite to industry events and, yes, even to media outlets like this one. And for good reason. Consumer demand for cloud-enabled digital services is growing fast, and disruptors are entering the space to meet that demand, dialing up the pressure on [financial institutions](https://www.financedigest.com/how-can-financial-institutions-make-the-most-of-data-for-their-business.html "HOW CAN FINANCIAL INSTITUTIONS MAKE THE MOST OF DATA FOR THEIR BUSINESS?  ") to keep pace. What’s more, by migrating systems, processes and data to the cloud, institutions that do it right will set themselves up to explore a wide range of new revenue [opportunities while also capturing new business](https://www.financedigest.com/the-north-heads-south-to-mipim-en-masse-to-corner-new-real-estate-business-opportunities.html "The North heads South to MIPIM en masse to corner new real estate business opportunities") efficiencies. Then there’s the ever-present cybersecurity threat, which looms large as institutions contemplate how to best protect their networks, systems, data and customers in a [cloud environment](https://www.financedigest.com/how-to-manage-identity-in-a-hybrid-cloud-environment.html "How to manage identity in a hybrid cloud environment"). Cybersecurity risks are a big reason [financial institutions](https://www.financedigest.com/3-ways-financial-institutionscan-leverage-live-engagement-on-social-media.html "3 ways financial institutions can leverage Live Engagement on social media") by and large are approaching cloud migration conservatively. In a recent banking trends survey conducted jointly by Windstream and Industry Dive, just 36% of banking and [finance execs said their institutions have already undertaken a cloud](https://www.financedigest.com/the-benefits-of-adopting-cloud-technology-in-the-finance-industry.html "The benefits of adopting cloud technology in the finance industry") migration and are planning to invest more in that effort. Asked how they would spend their resources on digital solutions, 70% of respondents identified [cybersecurity as their highest investment](https://www.financedigest.com/large-investment-success-for-basingstoke-cybersecurity-start-up.html "Large investment success for Basingstoke cybersecurity start-up") priority. **Cloud Appeal** As legitimate as their cloud-related cybersecurity concerns may be — financial services and banking long have been a favorite target for cyberattacks, according to [Financial Services Information Sharing and Analysis Centers](https://www.bloomberg.com/news/articles/2022-03-10/financial-firms-poised-for-worse-cyber-threats-after-trying-year)’ 2022 report, and the frequency and cost of these incidents are increasing — the benefits of migrating more aggressively to the cloud are too substantial to ignore: - **Future-proofing the business.** Driven by customers’ desire for convenience, self-service and integrated experiences, the [future of core banking](https://www.financedigest.com/bank-of-the-future.html "Bank of the future") is irrefutably cloud-native, with the emergence of open banking and apps designed to empower people and give them greater insight into their finances. It’s critical that institutions begin identifying the role they’ll play in these areas, then start putting a digital, cloud-based infrastructure in place to support that role. - **Enhancing security around your network, data and digital assets.** Security clearly [must be top-of-mind in the context of any bank’s cloud](https://www.financedigest.com/why-finance-professionals-must-bank-on-a-journey-to-the-cloud.html "Why finance professionals must bank on a journey to the cloud") migration effort. The good news is that with a modern, software-defined wide-area network (SD-WAN) to support their cloud-based systems, institutions gain [access to a range of security tools that protect](https://www.financedigest.com/supporting-a-fair-and-resilient-society-by-protecting-access-to-cash.html "Supporting a fair and resilient society by protecting access to cash ") the network and the assets connected to it — tools like Secure Service Edge (SSE) and Secure Access Service Edge (SASE). - **Giving consumers what they want and communicating with them on their terms.** FinTech companies, banks and their [partners are moving aggressively to meet customer demand](https://www.financedigest.com/veraviews-welcomes-hoopla-digital-as-a-demand-partner.html "VeraViews Welcomes Hoopla Digital as a Demand Partner") for a better user experience by offering cloud-based services built around APIs (application programming interfaces). - **Meeting regulatory requirements more** [efficiently. Reporting and compliance data can be much more straightforward to manage](https://www.financedigest.com/iforces-route-genie-to-drive-efficient-carrier-management-for-freestylextreme.html "IFORCE’S ROUTE GENIE TO DRIVE EFFICIENT CARRIER MANAGEMENT FOR FREESTYLEXTREME") and access via a single, integrated cloud-based network. - **Accessing advanced data analytics to run the business more intelligently.** Newer cloud data architectures come with [powerful](https://www.financedigest.com/4-ways-high-performance-analytics-powers-financial-services.html "4 ways high-performance analytics powers financial services") data analytics tools banks can use for pricing loans and other products, targeted marketing, etc. **Migration Best Practices** Realizing [benefits like these as part of a cloud](https://www.financedigest.com/can-finance-reap-the-benefits-of-the-cloud-without-compromise.html "Can finance reap the benefits of the cloud without compromise?") migration isn’t a given, however. Based on our experience helping institutions migrate to the cloud, here are some of the practices that consistently produce positive outcomes: 1. **Make a wish list,** prioritizing the solutions in order of must-have to nice-to-have. Your priorities for cloud migration are based on a number of factors, starting with the demands of your current and [target customer](https://www.financedigest.com/insurance-marketing-is-more-targeted-with-the-single-customer-view.html "Insurance marketing is more targeted with the single customer view") base. You also need a [clear picture of your current core systems](https://www.financedigest.com/sales-growth-of-automotive-clear-vision-systems-market-is-driven-by-production-of-new-vehicle.html "Sales Growth Of Automotive Clear Vision Systems Market Is Driven By Production Of New Vehicle"), including those running on legacy software that you identify as most in need of replacement. And you need to [ensure your network is robust enough to support a move](https://www.financedigest.com/vias-cloud-based-solutions-ensure-painless-office-move-for-insurance-body.html "VIA’S CLOUD-BASED SOLUTIONS ENSURE PAINLESS OFFICE MOVE FOR INSURANCE BODY") to cloud. Conducting a cost-benefit [analysis of your technology](https://www.financedigest.com/automotive-exterior-trim-parts-market-size-industry-report-analysis-growth-future-trends-top-manufacturers-and-technology-toyota-boshoku-corporation-plastic-omnium-cie-automotive.html "Automotive Exterior Trim Parts Market Size, Industry Report Analysis, Growth, Future Trends, Top Manufacturers And Technology| TOYOTA BOSHOKU CORPORATION, Plastic Omnium, CIE Automotive") options is a must as you prioritize your wish list relative to your budget. 2. **Educate the C-suite and the board** by conveying the case for migrating to the cloud, along with the steps a migration would entail and the [impact it would have on the business](https://www.financedigest.com/impact-com-releases-the-partnership-economy-a-new-book-that-guides-businesses-to-success-in-a-digital-world.html "impact.com releases The Partnership Economy, a new book that guides businesses to success in a digital world"). 3. **[Develop a migration strategy](https://www.financedigest.com/yves-mirabaud-says-we-are-on-track-with-our-development-strategy.html "Yves Mirabaud Says “We are on track with our development strategy”"),** whether it involves a major overhaul or a piecemeal approach. Some [banks choose to go all-in by migrating multiple core applications and systems to the cloud](https://www.financedigest.com/european-banks-cash-in-on-rising-rates-as-clouds-gather.html "European banks cash in on rising rates as clouds gather"). Others opt for a more conservative approach. Whatever route an institution chooses, be sure to have a migration plan that covers everything from strategy to roles and responsibilities, technology and vendor selection, and [business requirements analysis](https://www.financedigest.com/setting-the-pace-cognitive-financial-planning-and-analysis-for-business-agility.html "Setting the pace – Cognitive financial planning and analysis for business agility"). 4. **Align with a provider that is best equipped to meet your strategic priorities and your support** [expectations. The support you get from your tech](https://www.financedigest.com/uks-dominos-expects-tech-investments-to-hit-2023-profit.html "UK’s Domino’s expects tech investments to hit 2023 profit") and cloud service providers during and after migration can be as important as the solutions themselves. So be sure to understand what your current core software provider(s) can (and are willing to) support. Are there solutions and providers out there that could better meet your needs and budget? Seek out strategic partners who can help you design and implement the right solutions for your institution, and prioritize a provider who can bring your must-haves together under one vendor. 5. **Make cybersecurity your top priority.** In a [recent report from VMWare](https://siliconangle.com/2022/04/20/vmware-report-finds-cybercriminals-increasingly-targeting-financial-industry/), 74% of financial security leaders said their institution experienced one or more ransomware attacks in the past year. So review your [bank’s tech](https://www.financedigest.com/how-can-banks-overcome-the-tech-trust-gap.html "How can banks overcome the tech trust gap?") stack, network architecture and security protocols to identify vulnerabilities and risks, then determine the protections that are likely to be most effective. 6. **Do it all through a customer lens.** A seamless, robust and secure [user experience](https://www.financedigest.com/fintechs-how-to-increase-loyalty-through-user-experience-and-fraud-prevention.html "FinTechs: How to increase loyalty through user experience and fraud prevention") is a must. Where can you automate? How readily and seamlessly can [customers hop from one communications](https://www.financedigest.com/a-ccm-platform-is-crucial-to-your-customer-communication-plans-heres-why.html "A CCM platform is crucial to your customer communication plans: here’s why") channel to the next? And how easy is it for them to conduct business through a single pane of glass? 7. **Measure.** You can’t improve what you don’t measure. To what extent are your migration efforts translating into [improved customer experience](https://www.financedigest.com/improving-customer-experience-and-profits-with-embedded-payments.html "Improving customer experience and profits with embedded payments"), new efficiencies and more revenue? A 2021 analysis from O’Reilly found that 90% of businesses use cloud computing, and almost half (48%) plan to migrate at least 50% of their applications to the cloud in the coming year. The sooner that [financial institutions](https://www.financedigest.com/the-future-of-financial-institutions-in-2023.html "The Future of Financial Institutions in 2023") embrace a move to the cloud, and the tools to protect their cloud systems, the sooner they can start to tap the benefits that come with being an intelligent, customer-focused, cloud-native business. _Bucky Porter is a financial services industry analyst for_ [_Windstream Enterprise_](https://www.windstreamenterprise.com/) _, a leading managed communications service provider. He has more than 20 [years of banking experience](https://www.financedigest.com/2021-the-year-of-buyer-experience.html "2021: The year of buyer experience") in roles such as regional branch leadership, technology consultant, and senior lending officer with community, regional and national banks._ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---