Avaloq’s partnership with Google Cloud will supercharge its digital banking services

• Avaloq’s partnership with Google Cloud will supercharge its digital banking services and position Avaloq to capitalize on financial institutions’ rising planned investment in cloud strategies.
• The strategic partnership supports Avaloq’s mission to become a leading provider of cloud platform solutions.
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Clients of the Swiss-based fintech software provider will be able to use its digital banking suite and other platforms on Google Cloud, per Finextra. Avaloq offers its wealth management and banking clients an array of end-to-end solutions through its platforms, which automate manual back-office processes and enhance data analytics capabilities, among other areas.

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The strategic partnership supports Avaloq’s mission to become a leading provider of cloud platform solutions by expediting the time-to-market and scalability of its solutions. Clients will be able to run Avaloq’s cloud-native solutions immediately through Google Cloud, rather than having to integrate the applications onto Google Cloud’s or another provider’s platform themselves.

This will save clients time and effort, making Avaloq’s solutions more attractive to financial institutions (FIs). Simultaneously, FIs will be able to access Google infrastructure to rapidly scale the use of Avaloq’s cloud-based applications and their associated benefits, such as the automation of manual back-office processes.

Avaloq’s Google tie-up is well-timed, given that FIs are accelerating their cloud strategies and some of its competitors already have partnerships with the big three cloud providers.

• FIs increasingly view cloud strategies as crucial to delivering their digital transformations, and they’re set to increase their expenditure on cloud services. Cloud-based solutions can lower FIs’ long-term IT expenses by leveraging computing power on demand and reducing the overhead of owning and running software infrastructure. Given that around 60% of US banks’ total tech spend goes toward maintaining legacy systems, cloud strategies will be an imperative for those looking to cut costs. Incumbents in key markets, such as the US and Canada, have indicated in their annual reports that they will be accelerating their cloud strategies—which presents an opportunity for solution providers like Avaloq to drive revenue growth.

• Avaloq’s banking software competitors already have partnerships with major cloud providers in place, spurring the firm to close the gap. For example, Temenos has teamed up with Google Cloud, while Murex is partnered with leading providers Amazon Web Services (AWS) and Microsoft Azure, among others. To stay competitive, Avaloq needs to offer similar ease of use around the deployment of its cloud-native solutions—which the Google Cloud tie-up will allow. Going forward, Avaloq should consider partnering with other cloud providers (both within and outside the big three) to ensure it doesn’t miss out on potential FI clients that primarily run applications on other providers such as AWS or Azure, and might opt for a competitor for convenience purposes.

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