More than half of the UK’s banking innovation leaders are frustrated by misleading claims around cloud technology, according to new data from SaaScada.
The survey of 150 banking executives shows that while the move to cloud continues at pace, many are discovering that not all “cloud” solutions deliver the benefits they promise.
The research reveals that 95% of UK banks have either already migrated or plan to migrate core banking workloads to the cloud. Their main goals are to achieve scalability and reliability, gain greater control over product development, and reduce costs. However, 57% of leaders say they are now “sick of cloudwashing”, complaining that many solutions marketed as cloud-native are in fact legacy systems rebranded for the cloud era.
When asked if they had fallen victim to cloudwashing, 39% admitted they had purchased a ‘cloud’ core banking system only to find it lacked genuine cloud capabilities. A further 23% said it was difficult to determine whether the solution was truly cloud-native, leaving only 38% who said the technology delivered as promised.
SaaScada CEO and co-founder Nelson Wootton said, “Adopting just any ‘cloud’ core banking system won’t instantly solve your core banking headaches, especially if that core isn’t truly cloud native. With cloudwashing obscuring the picture, banking heads must ensure they do their research and don’t fall for the marketing! It’s vital to understand what makes a core system cloud-native: born in the cloud, providing access to real-time data and architectural flexibility to drive innovation.”
The company advises banks to look for five key signs when evaluating cloud-native systems. These include low setup costs, unlimited scalability, no mandatory downtime for upgrades, access to real-time customer data, and the flexibility to design and launch products quickly in line with customer demand.
The findings highlight a growing awareness among banks of the need for genuine cloud-native solutions that can deliver on the promises of efficiency, innovation, and cost savings – rather than legacy technology in disguise.
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