Navigating the journey: The challenges and opportunities of migrating financial services data to the cloud
From the vantage point of maintaining a solid digital infrastructure, financial service providers are standing at crossroads. The decision before them is a complex one, to migrate their data to the cloud or maintain with the antiquated on-premises platform. Cirata recently hosted a digital roundtable with many US FinServ organizations joining for an evening of lively conversation. We explore this labyrinth and provide insights into the key considerations, challenges, and opportunities of migrating to the cloud.
The lure of the cloud
In the age of ceaseless data generation, cloud environments such as AWS and Azure are revolutionizing the way financial services operate. These platforms promise efficiency, security, cost control, and ease of access, making them popular choices among organizations. Interesting additions to the mix are Databricks and Snowflake. Preferred for their impressive performance and cost-effectiveness for data integration and analytics.
The roadblocks on the cloud path
The migration journey, however, is not devoid of its pitfalls. From data security and privacy concerns to regulatory constraints, several challenges can seep into the migration process. Moreover, maintaining data integrity during the transition using disaster recovery and data synchronization is a complex undertaking. A leading US financial services organization that has already made the cloud journey shared some lingering concerns on cost control and security.
The lifeblood of migration: Data quality
One of the critical facets of a successful cloud migration is data quality and normalization. Understanding the quality of data being used, and ensuring that it can be used for business goals irrespective of crucial. Processes must precede tool selection, and continual process improvement is a must for maintaining data quality. Tools are essential, but they don't serve their purpose without a well-defined process in the backdrop. Therefore, identifying critical data elements, their sources, and implementing cost-effective and beneficial controls to enhance data availability and usability is fundamental to the overall migration strategy.
The human aspect: Networking
While digital infrastructure is essential, the human element in the event cannot be understated. The importance of networking and establishing connections within the financial services industry was underscored during our discussion. It is these connections and shared experiences that arm organizations with the knowledge transfer.
While the journey from a traditional on-premises platform to a dynamic cloud-based one poses its own challenges, the willingness of people to transition and adapt to the new environment brings hope. With proper emphasis on data quality, careful selection of cloud platforms, and a focus on network-building, migrating to the cloud could be the solution financial institutions have been seeking to increase their agility and resilience in a digital world.