Research shows that banks that successfully switch to a cloud core will be bigger, more profitable, and grow faster, leading to a value creation opportunity of $20 trillion, as highlighted in a new report from SaaS cloud banking platform Mambu.

The ‘Get in Front with a Cloud Core’ report reinforces the business case for fast-tracking core transformations. It reveals how banks can outpace their innovative fintech competitors and turn bank cores around by taking advantage of cloud-native financial solutions powered by Mambu and Google Cloud.

With more nimble fintechs on the scene, customers are not waiting for banks to catch up. This has led to 61% of established banks struggling to reduce churn. Mambu and Google Cloud revealed that the answer to this long-standing problem is for banks to expedite a cloud core. McKinsey predicts that banks that successfully manage this transition will be bigger, more profitable, and grow faster, leading to a value creation opportunity of $20 trillion.

Omar Paul, Senior Vice President, Product and Engineering at Mambu said: "Being forced to concentrate on front-end improvements because of legacy infrastructure's inflexibility adds complexity and inefficiencies to the back office. This hurts a bank's cost, performance, and sustainability. Using a cloud-native core reverses this, and Mambu and Google Cloud assisting financial institutions to transform themselves is why I am so excited about our partnership."

The full report has been published on Mambu’s website. Here is an overview of what is covered in the report:

• Why banks must go beyond online services and provide seamless digital experiences for all customers
• Why expediting to a cloud core will unlock a realm of benefits for both banks and customers
• How banks can begin the transition to a cloud core to unlock innovation potential for customers and match the pace of today’s fintechs