 |
| Etienne Bernard, Head of Transaction Services, EMEA, RBS |
European businesses started really looking into cloud technology as part of their preparations for the Single Euro Payments Area (SEPA) regulation – a drive to simplify and harmonise payments formats by introducing a single set of standards. Many corporates were attracted to using external technology as a cheaper and faster alternative to developing internal solutions or buying hardware – particularly as they have much to do before the deadline of 1 February next year.
But while regulatory compliance is the catalyst, companies are now starting to realise that cloud technology can bring far greater benefits and give them a competitive advantage in their day-to-day operations.
Cloud technology involves using computing resources – hardware and software – that are delivered on demand over the internet rather than being hard-wired into internal systems.
The agility it brings enables businesses to respond to changing or emerging opportunities and to enter new markets quickly and cheaply without the need for costly infrastructure.
In terms of how they use it, in its simplest form a corporate can find an individual cloud solution provider to carry out a single, specific activity for them. There is nothing to stop companies adopting several solutions from several suppliers and signing multiple contracts.
However, there are a few cloud technology providers which can offer an open architecture platform on which they can host not only their own solutions, but those of others as well.
This flexibility means businesses can use the cloud for a wide range of activities in one place, enabling them to operate more efficiently and with fewer contracts and service level agreements.
For example, at RBS we work closely with a number of IT vendors, one of which already delivers cloud-based solutions for a number of our clients.
Those clients have a single point of contact with us – an organisation they already know, which should help ensure their risk and compliance teams are comfortable with the counterparty risk.
Currently, cloud technology is mainly used for data transformation and enrichment – making existing information fit a new format and adding new fields to make it compliant externally and more useful internally. But it can also be adopted for a range of things such as mobile payments, virtual accounts and checking sanction lists.
These services can be tailored to the corporate’s individual needs and, with flexible pricing options, even be adopted on a ‘pay as you go’ basis – far better than the old approach of buying a one size fits all package off the shelf with a big, up-front price tag.
Another advantage of operating in the cloud is that it’s the IT vendor’s responsibility to maintain and update the solution as it develops over time. Ultimately, the corporate has to pay for the services delivered – but this amounts to a lot less than the cost of owning and updating the technology solution in-house.
The concept behind cloud technology – using remote servers to process and share information – is not new. Social media, file sharing and storing music in the cloud is something many of us do without a second thought each day.
Now the business community is waking up to the opportunities the cloud concept presents. It might start with meeting regulatory requirements but those who embrace it as a true business opportunity are most likely to emerge the victors.
Disclaimer
The Royal Bank of Scotland plc (“RBS”), The Royal Bank of Scotland N.V. (“RBS NV”) and RBS Citizens, N.A. (“Citizens Bank” or “Citizens”) are subsidiaries of The Royal Bank of Scotland Group plc (“RBS Group”). With RBS Group and other subsidiaries and affiliates of RBS Group they are referred to here as “RBS Group Members”. Charter One is a division of Citizens. No representation, warranty or assurance of any kind, express or implied, is made as to the accuracy or completeness of the information contained in this document and the RBS Group Members accept no obligation to any recipient to update or correct any information contained herein. The information in this document is published for information purposes only. Views expressed herein are not intended to be and should not be viewed as advice or as a recommendation. You should take independent advice on issues that are of concern to you. This document does not purport to be all inclusive or constitute any form of recommendation and is not to be taken as a substitute for the recipient exercising his own judgment and seeking his own advice. This document is for your private information only and does not constitute an analysis of any potentially material issues nor does it constitute an opinion to buy or sell any investment. Prior to entering into any transaction, you should consider the relevance of the information contained herein to your decision given your own investment objectives, experience, financial and operational resources and any other relevant circumstances. No RBS Group Member, nor any other person, shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits, arising in any way from the information contained in this communication.
The Royal Bank of Scotland plc is registered in Scotland No. 90312. Registered Office: 36 St. Andrew Square, Edinburgh EH2 2YB. It is authorized and regulated by the Financial Services Authority. The Royal Bank of Scotland N.V. is registered with the Chamber of Commerce and Industries for Amsterdam, The Netherlands, with No. 33002587; its registered head office is Gustav Mahlerlaan 350, 1082 ME Amsterdam, The Netherlands. It is authorized and regulated by De Nederlandsche Bank, the central bank of The Netherlands. Citizens is a National Bank, organized, existing and regulated under the laws of the United States of America. RBS is regulated in Hong Kong by the Hong Kong Monetary Authority, in Singapore by the Monetary Authority of Singapore, in Japan by the Financial Services Agency of Japan, in Australia by the Australian Securities and Investments Commission and the Australian Prudential Regulation Authority ABN 30 101 464 528 (AFS Licence No. 241114) and in the US, by the New York Department of Financial Services, the State of Connecticut Department of Banking, the Federal Reserve Bank of Boston and the Board of Governors of the Federal Reserve System. Any financial instruments described in this document are made in compliance with an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended. In the United States, securities activities are undertaken by RBS Securities Inc., which is a FINRA/SIPC (www.sipc.org) member and subsidiary of The Royal Bank of Scotland Group plc. Dubai International Financial Centre: This material has been prepared by The Royal Bank of Scotland plc and is directed at “Professional Clients” as defined by the Dubai Financial Services Authority (DFSA). No other person should act upon it. The financial products and services to which the material relates will only be made available to customers who satisfy the requirements of a “Professional Client”. This document has not been reviewed or approved by the DFSA. Qatar Financial Centre: This material has been prepared by The Royal Bank of Scotland N.V. and is directed solely at persons who are not “Retail Customer” as defined by the Qatar Financial Centre Regulatory Authority. The financial products and services to which the material relates will only be made available to customers who satisfy the requirements of a “Business Customer” or “Market Counterparty”.
RBS and its affiliates, connected companies, employees or clients may have an interest in financial instruments or products of the type described in this document and/or in related financial instruments or products. Such interest may include dealing in, trading, holding, or acting as market-makers in such instruments and may include providing banking, credit and other financial services to any company or issuer of securities or financial instruments referred to herein.
The daisy device logo, RBS, and The Royal Bank of Scotland are trade marks of RBS plc and the RBS Group Members.
Copyright 2013 RBS. All rights reserved. This communication is for the use of intended recipients only and the contents may not be reproduced, redistributed, or copied in whole or in part for any purpose without RBS plc's prior express consent.
RBS acts in certain jurisdictions as the authorised agent of RBS NV and RBS NV acts in certain jurisdictions as authorized agent of RBS plc.