These two pandemic-induced phenomena have lent to greater adoption of cloud technology, automation, and artificial intelligence. In this blog, the fourth in our\u00a0series on digitization in banking<\/a>, we\u2019ll explore the impact of these three technologies on the banking industry.<\/p>\n\n\n\n Cloud adoption is often step one of the digital transformation processes. This is because the scale and flexibility of cloud enables organizations to adopt other new digital technologies. The shift to remote work \u2013 and remote everything else \u2013 during the pandemic forced banks to adopt cloud technologies more hastily.<\/p>\n\n\n\n There are a few reasons for banks to adopt cloud strategies now.<\/p>\n\n\n\n Migrating from legacy systems can be daunting. However, it\u2019s necessary for banks to make the transition to keep up with cloud-first, digital-native competitors like neobanks and fintechs. Luckily, banks don\u2019t need to go all-in on cloud to take advantage of the opportunities it presents. Many take a hybrid approach, opting to maintain existing legacy hardware while adopting cloud for some use cases.<\/p>\n\n\n\n According to one study from GFT, 86% of bankers have adopted cloud to take advantage of its nearly limitless scalability.<\/p>\n\n\n\n The way consumers bank has changed how banks operate. As consumers require greater personalization and better digital experiences, banks must answer their needs. Cloud architecture can be scaled or down as the digital needs of banks \u2013 and their customers \u2013 expand. Any bank considering investing in digital tools to enhance their business must consider the scale their network enables them to achieve.<\/p>\n\n\n\n Cloud technology requires virtually no hardware, making it cheaper to install and easier to maintain. There\u2019s no need for dedicated staff to upkeep the physical infrastructure required for legacy systems. What\u2019s more, cloud service providers often offer flexible pricing options, allowing you to pay for what you use \u2013 not any more. With hardware-based systems, you won\u2019t get that level of flexibility and you often end up overpaying for bandwidth you don\u2019t use.<\/p>\n\n\n\n It\u2019s not surprising, then, that 81% of bankers responding to the GFT survey note that they adopted cloud technologies to save costs. How much your company saves with cloud computing depends on what infrastructure you\u2019re using now and related costs.<\/p>\n\n\n\n Regardless of what form your digital transformation journey takes, cloud technology will play an essential, foundational role. Moving data to a centralized, virtualized location is the first step in taking full advantage of it. All banks have rich troves of customer data these days. Whether they\u2019re able to use that data depends largely on how it\u2019s stored and managed. Once data is in one location, teams can then use it to extrapolate meaningful consumer insights to provide better customer experiences.<\/p>\n\n\n\n One of the most common and harmful misconceptions about the cloud is that it\u2019s less secure than on-prem. Cloud service providers actually build security into their tools. Still, it\u2019s important for banks to consider where in their technology stack vulnerabilities may lie as they formulate cloud strategies.<\/p>\n\n\n\n All in all, a robust cloud strategy can help a bank achieve optimal network efficiency.\u00a0One Zayo customer, a global investment bank<\/a>, was able to boost security, streamline data, increase agility and network flexibility, and save on costs by leveraging Zayo\u00a0CloudLink<\/a>\u00a0to connect from their private cloud to multiple cloud providers.<\/p>\n\n\n\n Cloud adoption is the first step to being able to take advantage of the following two technologies, so it\u2019s critical to start with a robust cloud strategy.<\/p>\n\n\n In the midst of widespread resignation, banks are finding themselves strapped for employees across the board. One way to help alleviate some of the burden employees face and avoid burnout and further staff losses is through automation. By automating mundane, everyday tasks, banks can free up their employees to work on more thought-intensive, pressing matters. There are a few areas where automation can help mitigate some of this burden.<\/p>\n\n\n\n Automation can help support middle and back-office workflows like check deposits and wire transfers. Deposit automation, for example, validates check images when they\u2019re deposited, eliminating the need for employees to clear them manually. This can help both free up time and lessen the chance of human error.<\/p>\n\n\n\n Automated systems like chatbots and phone voice assistants can support simple customer queries. By answering simple questions, this technology reduces some of the load on call center staff. Plus, these technologies can streamline conversations representatives have with customers by giving them a good picture of the customer\u2019s question before they speak with them. This leads to better conversations and customer satisfaction.<\/p>\n\n\n\n Checking over applications and documents to approve loans, open credit cards, and more can prove to be a tedious task. Luckily, automation can lighten some of the load here. By processing documents through automation, banks receive more accurate documentation that are less prone to human error. It can also make it easier for customers to fill out forms and applications by automatically filling out information that exists in the system already. Plus, automation tools can detect fraud by instantaneously cross-checking content across documents and other sources.<\/p>\n\n\n\n Human resources traditionally spend a lot of their time looking over resumes in search of relevant skills and information. Thankfully, automation tools take some of this work off of their plates by screening resumes and cover letters for skills and other keywords to weed candidates out or move them ahead.<\/p>\n\n\n\n Artificial intelligence and machine learning can further cut down on time human employees spend doing manual tasks while providing greater insights, strengthening security, and enabling more informed decision-making. It\u2019s no wonder\u00a075% of respondents<\/a>\u00a0at banks with over $100 billion in assets are implementing AI strategies today. AI and machine learning can support banks in the following ways.<\/p>\n\n\n\n By enabling individual voice, face, and fingerprint identification through AI, customers can more easily access accounts and banks can reduce fraud and identity theft.<\/p>\n\n\n\n NATWEST, a UK-based bank, takes AI-based biometrics to the next level by allowing customers to\u00a0open a bank account<\/a>\u00a0with a selfie to verify ID documents. This removes friction for customers and bank employees, cutting down time to open an account while increasing account security.<\/p>\n\n\n\nCloud adoption<\/h2>\n\n\n\n
Keep up with the competition<\/h3>\n\n\n\n
Harness near-limitless scalability<\/h3>\n\n\n\n
Optimize costs<\/h3>\n\n\n\n
Move digital initiatives forward<\/h3>\n\n\n\n
Remain secure<\/h3>\n\n\n\n
![\"\"](\"https:\/\/zayoustrans.burbledev.com\/wp-content\/uploads\/cloud-computing.jpg\" "\\"\\"")
<\/figure>\n\n\n\nBuilding upon a cloud foundation<\/h2>\n\n\n\n
![\"\"](\"https:\/\/zayoustrans.burbledev.com\/wp-content\/uploads\/A-Pulse-on-Banking.jpg\" "\\"\\"")
<\/figure>\n\n<\/div><\/div>\n\nAutomation<\/h2>\n\n\n\n
Banking operations<\/h3>\n\n\n\n
Customer service<\/h3>\n\n\n\n
Application and loan processes<\/h3>\n\n\n\n
Employee recruitment<\/h3>\n\n\n\n
![\"\"](\"https:\/\/zayoustrans.burbledev.com\/wp-content\/uploads\/cloud-computing-1.png\" "\\"\\"")
<\/figure>\n\n\n\nArtificial intelligence and machine learning<\/h2>\n\n\n\n
Customer identity and authentication<\/h3>\n\n\n\n
Personalization<\/h3>\n\n\n\n