Publisher’s Note: CUInsight is hosting a free webinar Wednesday, October 5th titled, “Cloud Migration Myths and Facts: 8 Things Your Credit Union Needs to Know”. We hope you’ll join us! Register here.
The credit union industry has seen rapid advancement in digital transformation since the COVID-19 pandemic. However, there are still many considering if it’s the right time to move to the cloud.
Credit unions typically do not have robust IT departments so prior to making any decision, it is smart to engage with a trusted third-party vendor – ideally a CUSO that understands how credit unions operate and the unique compliance regulations they must follow.
The right IT partner will ask questions to determine the appropriate timing and steps to take to transition to the cloud. Taking the right steps and understanding how the transition will impact the way the organization operates is critical.
The benefits of moving to the cloud are many, including cost savings, flexibility, scalability, and a shift in workload allowing for more innovation and improved operations. The transition from idea to cloud strategy to cloud implementation, however, can be filled with hurdles, tough decisions, and potential mistakes if leaders fail to approach it with the right mindset and information.
- Credit unions are already in the cloud! Even if an organization still maintains on-prem infrastructure, the vendors and systems being used are in the cloud. It is important for leaders to recognize this and ask vendors questions to better understand how their employees and members are protected and risk is being mitigated.
- The cloud does not eliminate a credit union’s responsibility for protecting data and systems. While the cloud offers the benefit of shared security, credit unions still have a responsibility to ensure policies and procedures are in place to mitigate risk.
- The cloud is allowed! The cloud is simply a virtual datacenter. Organizations must design, secure, monitor and manage the cloud, as with any other type of technology. As a result, the regulations are transferable and applicable.
According to a statement from NCUA and FFIEC, “Due diligence and sound risk management practices over cloud service provider relationships help management verify that effective security, operations, and resiliency controls are in place and consistent with the financial institution’s internal standards. Management should not assume that effective security and resilience controls exist simply because the technology systems are operating in a cloud computing environment.”
A move to the cloud is a big transition in the operation of a business, and it can have significant implications for your workflows, applications, and processes from end to end. However, many organizations believe that a cloud strategy and the ultimate implementation of it will be, in itself, the solution to their technology woes.
This is not the case. Instead, credit unions should use digital transformation as an opportunity to evaluate all technology applications, workflows, policies, and procedures, to avoid migrating inefficiencies and bad practices to a new environment.
The following practices can help credit unions ensure the transition from cloud strategy to implementation succeeds:
- Identify measures of success that can be used to evaluate the alignment of the cloud strategy with expectations for transformation.
- Select a partner with the experience and tools to ease the transition and streamline the various stages of implementation.
- Think about how the cloud can transform your organization, providing new efficiencies and features to improve business operations.
A transition to the cloud can mark a turning point in the trajectory of an organization’s growth. However, the development and implementation of a cloud strategy can be a time full of missed opportunities, mistakes, and hiccups without the right perspective and team in place.
To learn more about cloud migration, join CUInsight and Think|Stack for a free webinar – Cloud Migration: Facts & Myths – on October 5, 2022. Hear from Think|Stack Director of Technical Solutions, Ryan McMillan, and Think|Stack CEO, Chris Sachse, as we discuss how your credit union can decide if, and when, a cloud migration can help you achieve your strategic IT goals for 2023 and beyond.