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The deal forms part of Lloyds’ £3 billion ($3.9 billion) digital banking strategy and will build on the bank’s multicloud approach. Lloyds intends to utilize several Google Cloud services over the course of the partnership, including Anthos, for modernizing app development; Apigee, for managing its APIs to support open banking initiatives; and other services for improving the customer experience and cloud security.
The bank’s willing embrace of cloud technology runs counter to a general lack of trust in the cloud evident in the UK financial sector. A resounding 85% of UK financial sector professionals say they distrust cloud computing, and that’s not necessarily due to a lack of understanding of the technology — 55% say they understand it, per 2019 research from Savoy Stewart sent to Business Insider Intelligence.
This distrust could be caused by a number of factors: In the US, where a similar percentage (88%) of financial industry professionals distrust cloud technology, the primary concerns are the possibility of data leaks and a lack of control over their data.
By pushing ahead with cloud integration, Lloyds could position itself to capture the cost benefits and greater efficiency offered by cloud computing before its more reluctant rivals. Using public cloud computing can reduce or eliminate the cost of running on-premise data centers and servers.
The cloud also offers amplified storage and the ability to access a range of applications and emerging technologies like blockchain and AI. And Lloyds already seems to have plans for the latter tech: The bank is keen to explore how it can deploy AI and machine learning to deliver “the best possible personalized experience,” to customers regardless of the channel they use to interface with the bank, Lloyds Group Transformation Director Zaka Mian said in a Twitter video announcing the Google Cloud partnership.