Cloud adoption in the banking sector is rapidly gaining traction in India, driven by the increasing digitisation of the economy and an emerging desire among market participants to revamp and modernise legacy infrastructure.
India is a market leader in fintech adoption, with 87% of the population embracing new technology. The country has seen extensive economic growth through the adoption of Aadhar, now the world’s largest biometric ID system, and the success of the Unified Payments Interface (UPI).
UPI person-to-person transactions accounted for 49% of all digital transactions in Q2 2022, with debit cards at 5% and credit cards at 3%. UPI clocked in over 17.4 billion transactions in volume and US$370 billion in the same period.
This fintech boom has impacted India’s banks, which have pivoted in recognising the growing importance of cloud-based services and platforms. In 2022 an industry group petitioned the nation’s central bank to develop a “clear and not unduly burdensome” process for cloud adoption.
IDC figures project that, by 2024, 80% of India’s corporate banks will run their trade finance and treasury workloads on the cloud. A further 60% of corporate banks are expected to revisit credit scoring models and prioritise open data strategies to enhance loan portfolio health and drive operational efficiency.
Selecting the right tools
The IDC Financial Insights report highlights how the cloud has become vital to banks’ strategies to gain a competitive edge in digital financial services. Cloud budgets are rising, with most banks planning to increase their cloud spending in the coming years.
Organisations looking to exploit this new cloud proliferation must seek the right technology partner with the right tools and technology to ensure an effective and secure transition from legacy software.
Undertaking a modernisation journey can be challenging, incorporating steps to ensure new and old systems can cooperate effectively. Furthermore, with a branching Indian diaspora, the country’s banks must be sure their systems operate in multiple jurisdictions effectively.
Cloud-based systems can eliminate the latency challenges, but deploying a system capable of handling complex account structures.
Read: What are the advantages of microservices-based infrastructure?
Pismo provides a 100% cloud-native SaaS processing platform for banking and cards. Our platform leverages the full capabilities of cloud infrastructure, providing flexibility, scalability, and unparalleled availability. It can reduce operating costs dramatically while ensuring a smooth migration journey from legacy systems.
The Pismo platform is based on Amazon Web Services (AWS), a leading cloud services provider and Pismo partner. AWS also recognises the immense potential of the Indian market for cloud computing in the fintech and financial services sectors. Prominent Indian companies are already leveraging the AWS cloud platform.
Handling security questions
A financial institution should ensure any partner it works with meets regulatory requirements. Public cloud-based platforms feature enhanced security and resiliency capabilities. AWS, for example, complies with various measures. This includes PCI-DSS, SEC Rule 17-a-4(f), Reg SCI, EU Data Protection Directive, FedRAMP, GDPR, FIPS 140-2, and NIST 800-171.
AWS also offers several security services. These manage access, analyse data for irregular activity with machine learning capabilities, mitigate DDoS attacks, encrypt data, and send alerts whenever changes are made to AWS resources. AWS customers can also access governance-focused, audit-friendly service features to meet regulations and standards.
Indian banks have the opportunity to grasp the benefits of cloud computing and set the stage for their future success. Want to learn about how Pismo can help? Download our product briefing ou talk to our experts!
