The research and advisory firm Celent, which focuses on technology for financial institutions, has released a series of video interviews with executives from 13 cloud-based core banking system providers, including Pismo.
Daniel Latimore, Chief Research Officer at Celent, interviewed Vishal Dalal, CEO for North America, Europe, and Asia at Pismo, for this video series.
“It’s no secret that banks’ adoption of the public cloud has been proceeding faster than anyone (including us, honestly) predicted two years ago. When you layer cloud on top of the generationally intractable challenge of core conversions, you have a match made in heaven: core banking in the cloud,” says Latimore in an article introducing the videos.
“We’ve spoken to more than a dozen providers of cloud-based core banking services to hear about their offerings and views on the market. These solutions have moved past the experimental stage as banks around the world have implemented them; it’s time for every institution to take a look at how core in the cloud fits into its strategy,” he says.
In the interview, Vishal Dalal analyses the differences between traditional cores and next-gen new entrants and discusses the misconceptions about core banking in the cloud. He also describes Pismo’s approach to partnerships and tells some success stories.
By adopting cloud-based core banking systems, banks avoid the expensive, upfront capital expenditures required to build or expand a data centre. A modern cloud-based platform gives them virtually unlimited scalability. And it allows them to develop and deploy new financial products much faster than they could with their legacy systems.
Vishal remarks that both banks and regulators have matured their views on cloud computing in the last few years: “The conversation with banks has shifted from ‘Should we go to the public cloud?’ to ‘What can we do to become cloud-ready?’,” he says, adding that there is a perception that the cloud is here to stay, and banks must embrace it.
Vishal also states that modern cloud-based platforms have made the migration process much simpler and more secure. In the past, core migration was kind of a “big bang” process: the technical team made configurations, flipped a switch and prayed that everything went well. It would be very expensive to run two traditional core banking systems in parallel.
Modern platforms have changed this since banks pay only for what they use. Running the new core alongside the existing one enables a gradual migration, which reduces risks and allows time for the training of the bank’s technical team. This is encouraging more banks to move to the cloud.
You can watch a 97-second précis of the video on the Celent’s website. The complete interview is available to subscribers.
Celent has also launched a new report on next-generation core banking systems. The paper, called Continuous Digital Transformation in the Cloud, highlights Pismo as one of the leading suppliers of banking technology globally.