Many banks still need convincing of cloud tech and digital signatures for treasury
Digitalization may be a hot topic in the treasury world, but many financial institutions remain unconvinced that the benefits justify the cost and disruption involved in moving away from in-house servers or manual signatures.
That is one of the most arresting findings from research published by Finastra into the priorities of heads of relationship, technology and product across global corporate banks.
It [is] difficult for banks to keep pace, further perpetuating this technology gap
Capco partner Peter Kennedy suggests this is down to a combination of prioritization of resources and the fact that some banks are yet to be convinced by the business case.
“Adopting cloud technology isn’t just a case of moving to cheaper and more flexible hardware – it requires operating model changes and learning new skills,” he says. “Both involve investment and potential disruption, and some banks may also harbour security and regulatory concerns.
“As a result, it might appear easier and cheaper to delay adopting these digital technologies in the short term.”
Torsten Pull, general manager corporate banking at Finastra, also notes the stringent regulatory requirements and concerns around data security.
“For cloud computing and digital networks specifically, regulation around these systems is constantly changing and – combined with competing priorities – makes it difficult for banks to keep pace, further perpetuating this technology gap.”