Technology Record - Issue 24: Spring 2022

102 www. t e c h n o l o g y r e c o r d . c om V I EWPO I NT Traditionally weighed down by legacy infrastructure and cumbersome processes, financial institutions are now compelled to embrace innovation and think differently. Agility is now the keyword for the banking sector, and it is an approach enabled by new technologies that require the kind of expertise and know-how organisations can only get by partnering with competent specialists. Just as banks rely on partners to implement and operate these new infrastructures, vendors of core banking software depend on these same partners to maximise the potential of their solution. This makes it necessary for the vendor to ensure they provide managed services partners (MSP) with the right tools to set them up for success. Widespread adoption of the cloud and open application programming interfaces (APIs) mean that managed service providers are now capable of providing a standardised platform on which banks can innovate. This new-found agility enables banks to become successful faster and improves their resilience by making them more responsive to changing market conditions. As cloud-native organisations, this puts MSPs in a strong position to become enablers of digital transformation. By partnering with a core banking software vendor that builds on this opportunity, MSPs can transition their customers to a software-led managed service model that encourages banks to move away from expensive and cumbersome bespoke services. There is a significant market opportunity for MSPs to leverage their experience and deliver and maintain a best-in-class managed service finance offering for tier three, four and five banks, giving these clients access to the same solutions as top-tier banks. One of the key drivers behind this opportunity is a large appetite for cloud adoption in the lower-tier segment of the market. If you look at a list of new and challenger banks globally, it reads like a who’s who of case studies for the public cloud. Even older challenger banks that did not have the benefit of mature public cloud in their infancy have since migrated or are in the process of doing so. The reason for this is that public cloud platforms, like Microsoft Azure, are key to unlocking agility. It is upon this infrastructure that organisations can plug in core banking solutions and commercialise them quickly, avoiding the two-year implementation time required by the traditional on-premises model. An MSP is there to help their clients migrate to the cloud with minimal disruption and to Driving business success through transformation Banks can set themselves up for success in untapped markets by embracing the digital age and partnering with the right software vendors and managed service providers L E V ENT E ROZ S AHE GY I : F I NA S T RA “Public cloud platforms, like Microsoft Azure, are key to unlocking agility”