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Standard Bank sees ROI from cloud, AI

Sibahle Malinga
By Sibahle Malinga, ITWeb senior news journalist.
Johannesburg, 28 Aug 2024
Investment in AI and cloud computing are part of Standard Bank’s broader strategy to drive digital transformation.
Investment in AI and cloud computing are part of Standard Bank’s broader strategy to drive digital transformation.

The acceleration of Standard Bank’s digital transformation strategy has seen it gain a return on investment, with a 28% increase in digital transactions, while containing cost growth at 2%.

According to a statement, the bank has adapted to the rapid growth in digital adoption by shifting its major technology expenditure from hardware to software, cloud, talent and subscription IT models.

This has led to growth in the number of customers using digital channels to transact and make payments at retail stores.

The bank says it decisions and future strategies have been driven by several key factors, including regulatory compliance and security, customer expectations and cost-efficiencies.

As a consequence of embracing cloud and artificial intelligence (AI) technologies, Standard Bank says it is seeing lower capitalised expenditure, while continuing to invest in its people and software to support improvements in security and stability of clients’ digital platforms.

Jorg Fischer, CIO of Standard Bank, comments: “Our focus on digital and cloud-based solutions has allowed us to reduce investment in on-premises infrastructure and lower capital expenditure. This transition is crucial for us to remain competitive and meet the evolving needs of our customers.”

According to the “Pulse of Cloud” survey conducted by the Wipro FullStride Cloud unit, organisations across the globe are increasing their investment in cloud, with the main drivers for this being AI and generative AI.

Standard Bank has partnered with cloud service providers Amazon Web Services and Microsoft Azure to leverage cloud computing.

According to the bank, these collaborations aim to offer faster innovation, flexible resources and economies of scale, helping it to improve its operational efficiency, enhance data management and accelerate the deployment of new services.

“These investments in AI and cloud computing are part of Standard Bank’s broader strategy to drive digital transformation, improve customer experience and stay competitive in the evolving financial landscape.

“Customers are already experiencing the benefits of AI through enhanced features on the banking app, as an example, or are being serviced in the back-office by AI or robotics, it says.

Fischer concludes: “We are actively focusing on strengthening our core infrastructure, system stability and security, to deliver best-in-class client platforms. Our investments in core banking systems, modernising client platforms, customer relationship management systems, AI-enabled contact centres and enabling platforms are all part of this strategy.”

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