One of the leading banks internationally that has headed to moving banking apps to cloud is Capital One. The move comes at a time when other banks are moving their banking apps to the cloud server. This is a crucial step forward, which is going to bring paradigm shift in banking experience by the banking customers.

There has also been a change in banking processes as well. The banking system is altogether is going to witness a major shift in the coming days with the advent of banking apps’ movement to cloud. It has been seen that McLean, Va., bank and card issuer has already started to shrink its physical technology infrastructure significantly. They have recently moved them to the public cloud of Amazon.

Move to Cloud Server

 

How it All Started and Done?

Initially, Amazon We Services were used by the banks and other businesses for software testing as well as its development. However, recently the same platforms were used for deploying new mobile applications. This move has been undertaken predominantly by Capital one. This is a significant move because nowadays banking apps have become a major arena of banking for the consumers and business organizations.  At a conference in the month of October last year Chief Information Officer (CIO) of Capital One, Rob Alexander, said that they started out the process just like many other large enterprises. The first step was to test the process and was essentially on an experimenting note. The same was done in the innovation labs. The use was essentially  developer-driven use of the platform and essentially grassroots related. However, in 2016 they changed their stance from passive to aggressive in implementing the cloud shift. It was not lab oriented anymore. It has been shifted to the fourth gear on cloud deployment. On AWS platform, the critical production workloads have been identified and accordingly the deployment has been done.

Who are the Other Banking Players Going this Way?

The other internationally renowned banking behemoths that are taking the cloud plunge for their banking apps are JPMorgan Chase, Goldman Sachs, and Synchrony Financial. However, Capital One’s shift to cloud of Amazon platform is considered an inflexion point or watershed moment. A senior analyst at Celent, James O'Neill, has said that if three years from now an analysis is done on the cloud adoption progress by mainstream banking, the adoption of AWS by Capital One will be regarded as the inflexion point, when a banking mammoth opted for cloud to host their banking applications.

How is it Going to Help?

It is said that the cloud movement of banking applications by large banks will help them lower cost of the computing solutions bank face on a real time basis. This move will essentially help them in competing with the Fintech start-ups such as Simple that operate in the cloud. Capital One has plans of decreasing their data centre count to three by 2018. It was eight in the year 2014.