The Cloud computing advantages during the lockdown
This report explains how the covid-19 crisis has accelerated de adoption of cloud computing by the financial sector as part of its process of digitalization. The Cloud Arquitecture has played a key role in enabling operational continuity during the crisis, something particularly relevant bearing in mind that the provision of financial services, in many countries, has been considered “essential.”
Most financial institutions are still in early stages in the cloud adoption process, however, the covid-19 has been an accelerant of all digitalization strategies where cloud appears as a key enabler. The paper reviews the advantages offered by this technology and points out to the following aspects where cloud has played an important role during the covid-19 crisis:
- Ensuring the smooth provision of services
- Enabling the opportunity to provide additional new services in simple, cost-efficient fashion
- Enabling the transition to new models of work, transitioning from physical to remote environments and managing volatile spikes in service demands
Scalability and elasticity of the cloud has shown the limitations of legacy applications and infrastructure to support the challenges in the global markets during the crisis.
The report provides some real examples on how the cloud enables companies to overcome the challenges posed during the lockdown such as the case of Banco Santander which increased x4 the volumes of daily chats and x30 the daily video/calls connections to respond to employees’ needs.
Filter results
According to José Carlos Díez, Professor of Economics at the University of Alcalá, Spanish households have access to some of the cheapest mortgages in Europe, with interest rates below both Euribor and long-term government bond yields.
According to the IEE, Spain's business tax burden exceeds the European Union average, both as a share of total tax revenues and as a percentage of GDP.
AEB, CECA and UNACC propose measures to increase banks' lending capacity by more than €2 trillion in the euro area, including over €250 billion in Spain, providing additional resources to strengthen banks and finance new investment.
According to Boston Consulting Group, regulation brought in after the GFC strengthened the financial sector’s resilience but institutionalized bias towards removing all risk over economic growth.
According to Ramón Casilda, the EU–Mercosur agreement will generate annual tariff savings of around €4 billion, which is significantly higher than the savings expected under the agreements with Canada and Japan.
Economist José Carlos Díez notes that Spain’s banking sector has an excess of deposits and sufficient liquidity to meet the credit demand of companies and households, and does so at the lowest interest rates in Europe, according to the ECB.
According to CEPS, regulatory and supervisory complexity acts as a structural constraint on integration, investment and market depth, with costs that weigh most heavily on smaller institutions, new entrants and cross-border business models.
According to the ECB, an efficient, secure and integrated payment system would strengthen the international role of the euro and deliver benefits such as lower financing costs, reduced exposure to exchange rate fluctuations and greater protection against sanctions.
According to the IEA one key debate in the EU on financial regulation simplification is whether to explicitly include competitiveness, efficiency or contribution to growth as objectives of the regulatory agencies, following the UK example.
According to IE University’s Center for the Governance of Change, deeper and more integrated financial markets would strengthen the euro’s global role. This requires, among other elements, resilient and interoperable payment systems and completing the banking union.
Partnerships between banks and private credit: The winners will be those that combine bank underwriting discipline, distribution, and customer access with private capital’s appetite for long-dated, illiquid risk, according to Oliver Wyman.
Lucrezia Reichlin (CEPR): A CBDC is not a prerequisite for monetary sovereignty. Confusing money with payments can risk misdiagnosing the problem and misaligning economic policy efforts.