How Cloud Technologies can drive the hyper-connected future of the financial services industry in Cyprus

In the aftermath of global disruptions, the financial services sector in Cyprus finds itself navigating through a maze of unprecedented challenges and opportunities. These challenges – which are symptomatic of the highly-volatile and evolving post-disruption landscape – when combined with shifting customer expectations, regulatory pressures, an augmented need for cybersecurity and an increasingly competitive environment, mean that financial institutions will need to adopt a strategy of hyper-connectivity in order to not only survive – but thrive. Underpinning this strategy of hyper-connectivity are the robust capabilities of cloud technologies.

Cloud technology, far from being a mere cost-saving or a simple storage solution, emerges as a strategic enabler for financial services providers. It propels these institutions towards achieving heightened agility, efficiency, security, and innovation. This transformative power of the cloud allows for the delivery of services that are faster, better, and more personalized, while at the same time ensuring compliance with the stringent standards of governance and risk management.

The advantages of adopting a hybrid cloud environment

The journey towards cloud adoption opens up a plethora of advantages for financial service providers. Primarily, it offers scalability, allowing these institutions to dynamically adjust their IT resources in alignment with their business requirements. This adaptability is crucial for handling unforeseen spikes in demand but also for the swift and easy launch of new products or services, all without the need for hefty investments in physical hardware or software.

Moreover, the adoption of cloud – in any configuration – offers unparalleled flexibility. It enables access to a diverse array of services and solutions from a multitude of cloud providers, which can be seamlessly integrated with existing IT infrastructures. As a result, cloud can optimize IT operations and ensure that financial services providers can tailor their technological ecosystems to meet their unique needs and objectives.

Security and compliance stand at the forefront of the benefits brought about by cloud adoption. Financial institutions can significantly bolster their security and resilience by leveraging the sophisticated capabilities and expertise offered by cloud providers. This encompasses protecting data and applications from cyber threats and ensuring rapid recovery in the event of incidents. Furthermore, the cloud facilitates adherence to evolving regulatory and compliance standards by providing environments that are both transparent and auditable. The aforementioned cloud capabilities could also help financial service providers in complying with the requirements of the Digital Operational Resilience Act (DORA) - a new European regulation which aims at promoting cyber resilience in the financial services ecosystem, by offering a framework of rules that create a more robust risk management process.

Innovation is another cornerstone of cloud technology as it enables financial services providers to tap into the potential of emerging technologies such as artificial intelligence, machine learning, data analytics, and edge computing. This, in turn, allows for the extraction of valuable insights from data, which can be leveraged to refine decision-making processes, enhance customer experiences, and improve overall business outcomes. Additionally, the cloud serves as a catalyst for the creation of new business models and revenue streams, particularly through the facilitation of open banking and participation in the API economy.

As financial services providers embark on their cloud adoption endeavours, the need for a trusted and experienced partner is paramount. Financial services organisations need partners that provide services that span the full gamut of cloud adoption, from designing and customizing cloud strategies that are closely aligned with an organisation’s goals – whether that be business, IT, operations or customer experience – to building secure and scalable cloud environments. A cloud partner’s role is crucial throughout the adoption phase, assisting with the design, build, migration and integration of infrastructure and applications into existing cloud ecosystems. Leveraging Kyndryl’s global experience, we have observed that continuous support during the evolution and transformation of cloud solutions is critical, as it ensures that financial services providers can swiftly adapt to changes in market or business conditions, and maintain a technological edge.

A hyper-connected future for financial services providers in Cyprus promises not only a competitive edge for these organisations, but also enhanced customer loyalty and increased profitability. Kyndryl, with its hands-on, pragmatic and progressive cloud value proposition – powered by its experienced teams with recognized certifications across leading cloud technologies from Microsoft, Google, Amazon and Oracle – is ready to lead its clients towards achieving their hyper-connectivity goals.

Markos Markides, Consult Partner at Kyndryl Cyprus