133 business models – are evolving so that they can provide much more value-added services.” Historically banks haven’t done much with this data as it flows through their systems. However, data standards such as ISO 20022, along with new cloud-based tools, make it possible to analyse vast volumes of information and contextualise it using artificial intelligence (AI), machine learning and analytics. The resulting analysis can help banks understand customers, personalise offers, improve liquidity and identify opportunities for further innovation. “Those insights can also be put at the heart of risk models for understanding and assessing counterparty risk, as well as for cash flow forecasting and preventing financial crime,” says Hazou. “Ultimately, cloud technologies like AI, machine learning and contextual services can help banks provide a better service and more value-added services to customers.” And it’s these cloud technologies that Microsoft – along with its global community of partners – is perfectly positioned to deliver to banks. According to Frost & Sullivan’s 2022 Global Cloud User Survey, almost half of all financial services institutions use Microsoft Azure to run their cloud applications and data. An overwhelming majority (94 per cent) say they are satisfied or very satisfied with their Azure services. The reasons for choosing Microsoft Azure over other cloud service providers reflect the industry’s unique challenges. Over half of Azure users cite “easy-to-use developer tools” as a key selection criterion – for firms that prioritise innovation as a means to compete with fintechs, the ability to quickly develop, deploy and update software is essential. Azure also helps financial services businesses to close the knowledge gap. Respondents cite managed and professional services from Microsoft and its partners to help them implement and optimise their clouds. Microsoft also has its industry-specific cloud – Microsoft Cloud for Financial Services – which integrates cloud services across Azure, Microsoft 365, Microsoft Dynamics 365 and the Microsoft Power Platform – all underpinned by an industry data model and pre-built data connectors designed to accelerate insights and improve business workflows. “Microsoft’s core role with financial services companies is really about helping them modernise,” says Hazou. “This was a different story just a few short years ago. In past issues of Technology Record, we’ve spoken about the struggle banks were having in moving to the cloud. I think that's all pretty much done and dusted – the cloud is ubiquitous now. Today banks recognise that the cloud is the dominant technology going forwards because it is modern by design and facilitates agile development. It’s easy to consume because the components are already compliant. A lot of that heavy lifting is already in place, enabling banks to modernise in a more comprehensive, quicker and safer way.” This helps financial services organisations to feel secure in a constantly changing operating environment. “It’s important to recognise that no one knows the future,” says Hazou. “No one predicted Covid-19. No one predicted the war in Ukraine or the impact that it’s having on global economics. The only certainty we have is that our world is in flux. And therefore, the best way a bank can address modernisation and stay at the forefront is by achieving the agility it needs to respond effectively and quickly to changes in the environment.” The cloud provides banks with this agility. Rather than forcing them to adopt technology for technology’s sake, it gives them a platform through which they can adopt the most relevant software solutions that serve both their own needs and those of their clients. “Ultimately, the cloud helps banks get to a position where they can expect change and respond immediately and seamlessly,” says Hazou. “As a result, they can quickly solve customer needs. That has to be the overarching goal – and that’s a goal that we, at Microsoft and through our partner community, help our banking customers to achieve week in, week out.” F I NANC I A L S E R V I C E S “ The resulting insight that comes from a constant stream of real-time payment information is where the real value lies for banks” V I EWPO I NT
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