The Unified Payments Interface (UPI) application can be moved to public cloud network considering volume of UPI payments that are processed by the systems of banks, says State Bank of India (SBI) managing director CS Setty.
“UPI is the biggest use case that can go to cloud. I personally believe this is one application that can definitely be moved to cloud considering the scalability,” he said at a panel discussion organised by the Federation of Indian Chambers of Commerce and Industry on Thursday.
The panel also had Kotak Mahindra Bank chief technology officer Milind Nagnur and Perfios chief strategy officer Ramgopal Subramani, among others.
Setty feels that a cloud adoption is important for any bank and one must approach it with caution considering the concerns over data privacy.
“We have noticed that a large number of applications for banks are not cloud native. Adoption would need to be evaluated by the fact that how many applications can actually move to public cloud. Most banks will find out that 10-12% is the maximum that they can get on cloud,” he said.
Here, banks must evaluate and carry out a cost-benefit analysis as to which applications can be transferred to cloud. Additionally, they must ensure that they have the right teams with clearly defined roles and responsibilities to facilitate cloud adoption.
Currently, 93-94% of transaction volumes happen outside branch channels and this means that technology is the backbone of banking.