Background
Discussions about the future of banking are constant and reflect the ongoing evolution of banks and the concerted efforts to modernise internal banking systems and their supporting solutions. Banks of all sizes and across all geographies are aware that they need updated and modern technology in order to deliver the experiences and services that modern banking customers are looking for.
While significant strides have been made towards updating the digital banking ecosystem, it’s evident that banks are generally embracing these changes at their own pace and on their own timelines.
Transforming banking infrastructure is of course important for future success, but that doesn’t mean that every bank is ready to undertake a full overhaul of systems and their technology stack right now.
How does SaaS fit-in?
The advent of Software as a Service (SaaS) has revolutionised numerous industries, offering streamlined deployment and management options for solutions that were traditionally on-premise. This shift has now extended its focus to banking, where SaaS is increasingly recognised for its potential to modernise operations, enhance agility, and improve customer experiences. However, despite its transformative potential, not all banks are prepared to fully embrace SaaS solutions at present.
For banks, determining the optimal timing for adopting SaaS deployment depends on various factors. Conversely, sticking to on-premise or private-cloud deployments might be preferable in certain situations. It’s crucial for banks to weigh these factors carefully to make informed decisions about their IT strategies.
Exploring deployment choices: what options are available?
Banks have several deployment options available to them: on-premise, private cloud, and SaaS. Each option has its own benefits and ultimately, the choice of deployment option depends on a range of factors such as security needs, scalability requirements, and regulatory compliance.
SaaS
solutions eliminate infrastructure needs, offering simple access and regular updates, but may raise concerns about data privacy and control.
On-Premise
involves hosting software locally on the bank’s own servers and infrastructure. It offers high control but requires infrastructure investment and maintenance.
Private Cloud
leverages private cloud infrastructure managed by a third-party provider. This option provides scalability and flexibility while still ensuring a dedicated and secure environment.
Determining when SaaS is the right choice for a bank
Determining when a SaaS deployment is the optimal choice for a bank depends on various factors, including project goals, vendors available, integrations required and the regulatory environment.
Goals of the project
For some SaaS deployments, the scope of what can be offered is limited. If your financial institution is looking for a full scale deployment of a vendor’s solution be sure to understand the potential trade-offs when choosing a SaaS deployment.
Regulatory environment
The geographical location of the bank and the regulatory landscape it navigates is important. Data residency concerns may arise, especially concerning cross-border data movement. On the other hand, certain regulators advocate for banks to embrace cloud migration and explore SaaS alternatives. Either way it can influence whether a bank decides on a SaaS deployment.
Data integration requirements
For many SaaS providers, they can simply set up an instance for each client. However, for data-reliant solutions, the requirement for seamless data integration remains. Ensuring that internal systems can integrate to a SaaS environment is an important consideration.
What considerations are key when selecting a SaaS vendor?
When selecting a SaaS solution vendor, several critical considerations come into play, with reliability, scalability, and security topping the list.
Reliability
Reliability is paramount, ensuring that the vendor’s services are consistently available and perform optimally without disruptions. A robust infrastructure, redundancy measures, and proactive monitoring are indicators of reliability.
Scalability
Scalability is another crucial factor, especially for banks anticipating growth or fluctuations in demand. The chosen vendor should offer an infrastructure that can seamlessly accommodate increases in user base or data volume without compromising performance.
Security
Security is of utmost importance in the banking sector. Banks must ensure that the SaaS vendor adheres to stringent security protocols, such as encryption, access controls, and regular security audits. Compliance with industry standards and regulations such as SOC2 and ISO 27001 are also crucially important.
When SaaS isn’t the right fit
There are plenty of reasons why SaaS may not be the right fit:
- Project requires a full scale deployment of solution but the selected vendor only offers a limited version of the solution.
- Regulators have introduced strict data protection rules which make it difficult to work with SaaS vendors.
- Integration with external SaaS providers is too difficult due to current technology stack.
- There is no adequate SaaS vendor available to support your bank’s needs.
If any of the above apply, you may consider choosing an on-premise or private cloud deployment instead.
Moneythor’s deployment options
Moneythor offers multiple deployment options to cater to the diverse needs and preferences of our clients including SaaS, on-premise and private cloud.
Our SaaS offering is a fully configurable deployment solution which allows our clients to access the full suite of Moneythor features and use cases, without limitations.
The Moneythor SaaS solution is scalable, reliable and adheres to the highest security standards. Moneythor holds SOC2 and ISO 27001 certifications.
