By Dave Smith - Consultant, Lusis Payments
It was John Gage of Sun Microsystems who coined the phrase, “the Network is the Computer” - way back in 1984. Understandably, this phrase was originally more of a vision than the reality. However, the ensuing 38 years of computing development has generated incredible progress. With the advent of Cloud computing we now live in a world where on-demand computing infrastructure can be readily purchased and deployed within any geographic region.
Surely we can agree that the computer industry has fully delivered Gage’s historic vision.
However, putting aside the numerous technical achievements we also need to consider the functionality of the software itself. A recent banking experience provided a sobering reality check and several points to ponder.
My “customer journey” started when I needed to update the registered address on my business account. This was accomplished easily enough using the online banking facilities. The real challenges started when I tried to change the address on the associated credit card. I had naively assumed that this could also be done online - given that both my business account and credit card were issued by the same bank.
After a lengthy wait in the phone queue, the support agent for the credit card team informed me that the address change for account had not updated on her system yet. Furthermore, it could take up to 3 business days to complete. Additionally, it wasn’t clear whether I would automatically receive a notification message once the credit card address was changed. What!?
So much for the “seamless customer journey” ideas that I hear being preached at banking conferences.
Today, banks are rightly giving significant attention to their “Cloud Strategy”, whether it be in the planning stages or early implementations. The recent acquisition of Cloud payments specialist, Renovite, by JPMC demonstrates the importance some banks are assigning their Cloud strategies.
In my view, a cloud strategy should not become overly distracted by the technology itself. The staggering levels of investment being injected by Microsoft, Google, Amazon, and others, will ensure that the Cloud will consistently become better and better.
The real question that banks need to ask themselves concerning their Cloud Strategy is what software investments are required to improve operational efficiencies, streamline the customers’ journeys, and increase competitive agility.
Simply shifting the same tired, poorly integrated ‘software blobs’ into the cloud may save a few bucks. It might even win the CIO some Brownie points. But it will do very little to Transform their business.
Hopefully, it is the Transformative potential of the Cloud that will guide the banks’ strategies beyond the short term cost gains.
Contact Lusis Payments when developing your Cloud strategy for solutions that improve your organization's operational efficiencies and improve customer experiences.
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