The world is being pushed towards a new paradigm in which simple, everyday tasks and functions that are often taken for granted become increasingly cumbersome. This is partly due to the ongoing global COVID-19 pandemic and its role in forcing essential digital media operations. However, this is a paradigm that we are already familiar with. It’s been on the horizon for years thanks to the continuous technological advancement of our world.
Rapid time to market and scaling to meet increased consumer demand in real time requires lean infrastructure operations and elastic, cloud-based infrastructure. Some financial institutions are ignorant of the benefits of cloud technology and those who switched from local infrastructure early on are poised to step into a post-COVID world stronger than ever.
Despite the obvious benefits, the world’s leading banks continue to fall behind on cloud adoption and are now further behind as faster technology players adapt to new digital environments.
Why Cloud Now?
Maintaining local infrastructure is a challenge – not to mention the high cost of staff, hardware, and maintenance – and it means banks and financial institutions are slower to introduce new features and upgrades than other industries. With the expansion and maturation of cloud technology over the past decade, these companies now face the option of either adopting more agile cloud technologies or being left behind by their competition.
While some financial institutions use cloud solutions to some extent, many companies are reluctant to undertake a comprehensive digital transformation because they deal with customer-sensitive data on a daily basis. Cloud technology and security have improved significantly, and there is no longer any reason why customers’ financial records live on outdated legacy systems that are inflexible and expensive to support.
If we can learn anything from the pandemic, we need improved solutions. The global economic crisis shows that comprehensive cloud solutions are up to the task. In fact, Microsoft recently reported a significantly increased use of cloud services in regions with forced social distancing. Cloud-based technologies are now considered essential for any business that wants to survive the pandemic – and keep pace with rapidly changing consumer demands.
Consumers today are digital-first – for example, when they order an Uber and get to their destination with a few taps on their phone – and expect the same to be the case with their banking services. Unfortunately, today’s global payments infrastructure has more to do with the outdated postal system than with this generation’s need for speed. The cloud solution from RippleNet offers banks and financial institutions a new platform to meet these requirements.
The future of banking is RippleNet Cloud
With the RippleNet Cloud, banks and financial institutions can maximize their business advantages with minimal effort and more flexibility. With the RippleNet Cloud, customers can send and receive payments with an integration and a common Ripple Payment Object (RPO) for all customers on RippleNet. This means less friction and more standardization when customers are scalable.
Using the cloud, customers can go live on RippleNet five weeks faster than on-prem customers and avoid hardware requirements or staff to get started. This speeds up payments for the end user. With RippleNet Cloud, financial institutions can also easily add alternative settlement via on-demand liquidity. Cloud customers can also more easily maintain and establish connections for all of their RippleNet connections via a single API.
Cloud solutions are also cheaper to deploy and manage than local solutions. Ripple’s operations team takes care of maintaining and updating the infrastructure, saving customers money that they can pass on to consumers in the form of lower costs and more competitive prices. In addition, RippleNet Cloud saves financial institutions hardware and personnel management costs and offers even greater advantages with today’s shelter requirements, as RippleNet Cloud uses Ripple’s operations and technical service teams for 24/7 monitoring and support.
Taken together, the benefits of speed and efficiency enable those using the cloud to compete more effectively, and our customers are taking note – including some of the largest members of RippleNet who have chosen to migrate their existing on-premises deployments to the cloud.
The world as we know it is unrecognizable, but with this unexpected change there is an opportunity to adapt and develop better, more seamless methods. Despite this global pandemic, global payments should be made immediately to ensure that daily life definitely goes on undisturbed.
The banks and financial institutions that offer these agile digital methods will be well positioned as innovators and leaders beyond this current crisis. If you are a financial institution interested in moving from the on-prem to the RippleNet cloud solution, contact us.