When meeting customer demands, the banking and financial services business is continuously changing. Customers now have higher expectations for customer care than ever before, with the customer experience being as vital as products and services.

In today’s changing environment, financial institutions must develop and deliver modern technology for an improved customer experience in real-time and at a lower cost. This critical need is challenging for many institutions because it necessitates gathering and processing many data sources and the modernization of obsolete operating models and legacy technologies. One thing is certain: financial institutions must upgrade their infrastructures to compete with more responsive and inventive competitors. Yet, some institutions are responding to this demand. For example, according to the Gartner survey, application modernization is the most widely stated goal for end-user cloud adoption in banking and investing services.

Raphael T J, Director of strategy, PixDynamics, and Arun K K, Head of strategy, PixDynamics, will be joining Rejith Krishnan, Founder, and CEO, of Cloud Control, for an exclusive webinar soon – where he will share valuable insights on “CLOUD ADOPTION IN BANKING: PITFALLS TO AVOID.” It is an incredible opportunity to collaborate with PixDynamics to expound on cloud adoption in banking through a webinar. Collaborating with an Experienced professional with a proven history of working in the banking industry is a pleasure. Raphael has extensive experience managing and controlling financial institutions, having previously worked as the Chief General Manager and CEO of South Indian Bank.


PIXDYNAMICS is a Cochin-based startup focusing on AI-based solutions and providing solutions for the digital world, such as digital consumers or BFSI digital transformation. PIXDYNAMICS concentrated on digital customer onboarding and verifications, intelligent document processing, and workflow automation to boost and improve user accuracy.

PIXD began as a startup venture in Cochin in 2018, with six engineers (now 50) and more than 13 clients, mainly in banking and NBFCs. The primary offering is video KYC, a complete onboarding solution for customer verification with proper documentation and verifications. In addition, because of the risk of mistakes with human efforts, PIXD offers customers OCR solutions to extract data from documents and validate the documents. The docs are customizable, and the customer’s pain point is addressed.


We are currently seeing how cloud technologies are altering business and society. For example, in the banking business, the regulator, the Reserve Bank of India, issued a white paper in 2015 outlining all security considerations that must be addressed in the cloud strategy. And, as a new innovative thing, banks have begun to move to the Cloud, either hybrid or private Cloud, particularly in the SAAS model; however, the main challenge for the banking industry is the availability of cloud options, where banks have begun to explore hybrid, private, and multi-cloud options.


  1. Lack of skills:
    One of the most significant barriers to cloud adoption in the banking sector is a need for more skills, affecting most banks. There are concerns about how to manage client banking difficulties. Banks still need to find enough senior cloud architects. People are still looking for the correct cloud engineers in the US and Europe since the technology is new and there are so many rules and standards that they must follow. Locating engineers with corporate expertise, cloud migration experience, and management experience takes a lot of work. Hence, the next step is to train the existing engineers to move and operate cloud-based apps.
  2. Data privacy and Security:
    Banks must ensure that data stored in the Cloud is safe and secure. They must also ensure their systems comply with all applicable data privacy laws. The RBI has addressed some security measures and provided areas where this strategy can be implemented, such as shared services, which are also applicable for corporate offices such as HR, legal CRM, customer-facing applications, mobile banking, branch banking, internet banking, and so on. As a result, it has created certain calm zones in which these types of applications may be migrated to the Cloud.
  3. Cost:
    Another concern is costs; there is a cost overrun in a bank with this type of solution. It takes four to five years to establish the implementation and stability of the firewalls and the security aspects we can build around them. However, cloud adoption usually comes with a three-year timeline.
  4. Ownership and data residency:
    When moving cloud infrastructure to the Cloud, the issue of ownership arises. Of course, there is an owner, but when it comes to audit requirements, banks must get answers from cloud service providers. As a result, there is an ownership challenge, which strong SLAs may alleviate. Then there’s regulatory compliance, which requires that the data be kept inside the geographical boundaries. There may also be instances when you must respond to audit comments within 24 or 48 hours. Data residency is critical since every nation wants to ensure that its data remains within its territory. And selecting the correct tools, partners, and cloud provider is crucial to ensuring data stays within the country’s boundaries.


We know that cloud computing can help us with faster development, deployment, scalability, and Security. However, cloud adoption is a design rather than a desire. Banks can experiment with new items or solutions, and different service providers with limitless access to the server. Another advantage of employing a multi-cloud method is that you can somewhat prevent vendor lock-in; a multi-cloud approach is critical to avoiding vendor lock-in. Some significant benefits include the following:

  • Improved customer experience:
    Customers have a better experience with the banking business since they may obtain financial services at any time and from any location.
  • Reduced costs:
    Moving applications and data to the Cloud may save banks money. Furthermore, the public Cloud’s pay-as-you-go pricing model makes it cheaper for financial institutions to use these services. To prevent expense runs, you can use auto scaling (auto-scale up and auto-scale down), which is totally software-defined and API driven. APIs may be used to develop applications and Infrastructure, known as Infrastructure as code. This may be utilized to increase resources or computing power as needed; the only need is that you have the necessary tools to do it.
  • Speedier processing:
    Cloud systems are built for speedier performance and to handle enormous volumes of data. This enables banks to improve transaction processing speeds and eliminate latency issues.
  • Visibility:
    Another notable advantage is visibility, i.e., to avoid cost overruns, the best thing to do is leverage auto scale and scale down. The Cloud will benefit from this as they are entirely software-defined and API driven. Businesses can design their applications and Infrastructure using APIs, called Infrastructure as code, to bring up the resources they need, but only using the right tools.
  • Observability:
    Another significant benefit is observability. Cloud resources are highly fluid, often assigned, reallocated, and scaled up and down. As a result, companies may have access to performance data, such as what resources were operating, how much resource consumption occurred, logs created in apps, who signed in and out, and so on. This data must be gathered and kept in a central location where developers, operations, and the helpdesk can access it for troubleshooting and auditing.


There are many misconceptions about any growing technology; the same is valid for cloud technology. The cloud providers invest more in cloud infrastructure security, which makes it a safe option as an on-premise, client-owned counterpart. One of the banks’ significant concerns is that they need more cloud-savvy employees and have slowed cloud adoption. Moving forward, cloud technology is the prime option for the banking industry seeking to transform and scale the business, thereby minimizing the risk, time, and cost. The bankers will recognize the benefits of continuing their digital growth by investing in cloud technology, which will become a powerful mainstay within the financial services industry.  

Do you want to know more about cloud adoption in banking; the pitfalls to avoid? You can watch the webinar here