For many Rural Banks today, having physical servers in their branches or head office is a cumbersome burden. This reality brings quite a few headaches with it, from the need to constantly support the remote locations by the bank’s IT team (today extremely difficult due to COVID-19 lockdowns), to extensive staff training and finally, the biggest pain of us all – substantial spending through both direct and indirect hidden costs.

Every single Rural Bank in the Philippines is being forced to find ways to cut costs in these challenging times for business.
So, you need to decide, rightfully, the time has come for your Core Banking System to transition to the cloud. All banks globally are making this transition. You are looking towards your peers, looking for successful stories and talking to people that have been there, that have gone through the process, asking for advice.
But if there is one thing Oradian can support you with, with our decade of experience of moving financial providers to the cloud, is – choose wisely. Technology providers come in all shapes and sizes, a lot of them not being very transparent with costs and hidden pitfalls.
If you had a sophisticated Mercedes engine, would you put it in an old Jeepny chassis? Just because it might seem more convenient, cheaper, at the start?
Would you expect it to perform as a proper vehicle, to take you safely and comfortably to your destination?
Or you are ready to call the towing service and pay for the mechanics on every second trip?
Would your passengers take a second trip with you again once they would be stuck on the scorching road, waiting for the truck?
Visionary, smart bank leaders understand the importance of reliable infrastructure that always performs, allowing you to focus on business. So reliable that you and your IT team sometimes forget it exists.
While many low-cost Core Banking System providers, which claim that they can take you to a Cloud system, rely on AWS (Amazon IT infrastructure leasing and hosting), the reality is a minefield. And you do not want to make costly mistakes, do you?
Today we will focus on the comparison of 3 possible ways to run your IT systems (servers) and all possible associated costs. A platform, however its software, services and algorithms are advanced, needs to run on computer servers, right? A Rural Bank can have their hardware systems:

  1. On-premise in all of their branches, and a central system physically in the HQ
  2. Leased/hosted completely on Amazon AWS or similar providers
  3. Provided in the cloud by their trusted Core Banking System provider (all costs included in the price of the Service)

There is an additional case where the Rural Bank owns and runs all the equipment, but is placing it in the third party data-centre, physically housed by a hosting provider (it is just a version of Option 1, so we will not go deeply into those details).
So, let us together, go into all the possible hidden costs, unacceptable choices and finally – how to make an informed decision yourself. For the sake of an example, we will take an average Rural Bank with 10 branch locations and an HQ.

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