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Cloud is Really the New Normal for Financial Services

“Cloud is really the new normal,” says Scott Mullins, Head of Worldwide Financial Services Business Development at AWS. “If you look across enterprise companies and financial services today, the vast majority are considering cloud as a major part of their IT strategy going forward. It’s just picked up that much momentum. I think we’re just scratching the surface in cloud for the industry.”

Scott Mullins, Head of Worldwide Financial Services Business Development at Amazon Web Services recently discussed how cloud has become a major part of every financial organization’s IT strategy:

Financial Organizations Are Moving to the Cloud

I get to actually lead a team of financial services experts whose sole function is to help our customers both from the standpoint of FinTech startups, all the way up to the largest banks, broker-dealers, exchange companies, and insurers use our tools. That’s what we do on a daily basis and we’re having a lot of fun doing it. It’s really fun to watch.

I think the big stories in 2019 are going to probably be a couple things. The first thing is if we look historically back at the last several re:INVENT’s we’ve seen more financial institutions coming forward and talking about what they’re doing in the cloud. I think the reason for that is because we’re getting more muscle memory from these organizations.

2019 Will Bring an Accelerated Transformation

They’ve had experimentation, they’ve had some foundations they’ve been laying over the course of the last couple of years, and now they have confidence. They have confidence to do two things. Number one to move much more quickly to embrace these tools and to move more workloads over and to build net new things, but also to talk about it. Most financial institutions don’t want to talk about something until they know it well and they know it works for them and that they’ve really de-risked it for themselves.

We saw Goldman Sachs last year. This year we saw Guardian Life Insurance talking about how they’ve changed the 158-year-old company and how they made it nimble and agile. They’ve actually been able to close data centers. I think we are going to see more of that. What that means is we’re going to see a much more accelerated transformation of the industry itself. I think we’re going to see more and more of those organizations coming out and talking about how cloud is a major part of their IT strategy going forward.

Going to See a Much Richer Ecosystem of ISVs

The second thing I think we’re going to see is a much richer ecosystem of ISVs. Just look across what we have today and what’s been announced this week. Bloomberg came out talking about B-Pipe on AWS. Refinitiv a couple of weeks ago was talking about the fact that Elektron runs on AWS. We’re working very closely with Broadridge. We’re working closely with Finical and Temenos and a lot of different vendors in the industry and that’s going to continue to happen at a rapid pace.

Financial Industry Undergoing Massive Transformation

The reason for that is twofold. Number one, you’ve got a lot of those customers who are going through massive transformations and they’re saying to their ISPs, I love the relationship that we have but I’m moving to the cloud. If we’re going to continue to have a relationship you’ve got to move to the cloud with me and those vendors are responding very positively.

Or you’ve got some vendors like IHS Markit who several years ago said, you know what, the future of financial services is in the cloud and I need to start moving before even my customers are telling me so that I can be ahead of the game. Those are two things you’re going to see be very key themes in 2019.

Cloud is Really the New Normal

Cloud is really the new normal. If you look across enterprise companies and financial services today, the vast majority are considering cloud as a major part of their IT strategy going forward. It’s just picked up that much momentum. I think we’re just scratching the surface in cloud for the industry. There’s going to be a room for not just one cloud provider, but multiple cloud providers and opportunities for everyone.

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