How Hybrid Cloud Is Transforming the Future of Banking

How Hybrid Cloud Is Transforming the Future of Banking

The banking sector is at a pivotal moment. As digital transformation accelerates and customer expectations rise, financial institutions must modernize operations to stay competitive and secure. This isn’t just about keeping pace with technology—it’s about survival in a fiercely competitive landscape where fintech startups and digital-first banks are reshaping the industry.

McKinsey reports that 71 percent of customers expect seamless digital interactions, yet traditional banks often grapple with outdated legacy systems. In an era where a single service disruption can erode customer trust overnight, hybrid cloud emerges as a strategic imperative for banks aiming to balance reliability with innovation.

 

Understanding Hybrid Cloud: The Best of Both Worlds

Imagine you have a secure home safe where you store your most valuable items – like important documents or jewelry. That’s like the private cloud, where banks keep their most sensitive data and core operations. It’s super secure and completely under your control.

Now think about your smartphone – you use it daily for convenient tasks like checking social media, sending messages, or making quick payments. That’s like the public cloud, where banks run their customer-facing services that need to be fast and easily accessible.

Hybrid cloud is like having both systems working together seamlessly. Just as you might keep your passport in your safe but carry a digital copy on your phone, banks can keep sensitive customer data secure in their private systems while running their mobile banking apps in the public cloud.

 

The Pros and Cons of Hybrid Cloud’s Impact on Banking

Embracing hybrid cloud is a strategic move that offers significant benefits while presenting new challenges. Banks must carefully weigh these factors to navigate their digital transformation effectively.

Pros: Why Banks Are Making the Move

Hybrid cloud offers the perfect balance of control and innovation. Banks can keep sensitive operations in-house while leveraging cloud capabilities for customer-facing services. This approach has reduced infrastructure costs by 20–30 percent and accelerated new service launches from months to weeks.

Security and compliance become more manageable, as sensitive data remains within private infrastructure while less critical operations utilize public cloud services. The ability to scale resources based on demand is particularly valuable during peak periods like year-end processing or unexpected market events.

Cons: What Banks Need to Consider

However, integration complexity tops the list of challenges. Connecting legacy systems with modern cloud services requires careful planning and expertise. Security management becomes more nuanced, necessitating unified policies across different environments and additional team training.

While hybrid cloud can optimize costs in the long run, initial investments in tools, training, and infrastructure updates can be substantial. Managing organizational change is also significant teams must adapt to new ways of working, and processes across IT and business units require adjustment.

 

Current IT Infrastructure Challenges in Banking and Finance

Tantangan Infrastruktur IT di Perbankan

Banks today face unprecedented pressure to modernize while maintaining stability. According to Forrester, 76 percent of banking decision-makers report that their existing IT infrastructure struggles to meet current business demands.

Service disruptions are a critical concern, with banking system outages increasing by 38 percent in the past year. Each major incident costs institutions an average of US$4.5 million in direct losses and reputational damage. System downtime spikes by 50 percent during periods of high market volatility—precisely when customers need reliable access the most.

Navigating a complex regulatory environment adds to the challenge. Financial institutions must handle over 220 regulatory changes daily across global markets, requiring real-time compliance monitoring, data sovereignty maintenance across jurisdictions, and comprehensive audit trails.

Cybersecurity threats are escalating. Financial institutions are three times more likely to face cyberattacks than other industries. 60 percent of banks have experienced sophisticated threats targeting legacy systems, endangering finances and customer trust. While 89 percent of banking executives feel compelled to accelerate their cloud journey to stay competitive, 73 percentexpress serious concerns about security risks in cloud environments, creating a complex balance between innovation and risk management.

 

How Hybrid Cloud Solves Banking Industry Challenges

Hybrid cloud addresses these challenges by providing unprecedented flexibility. For example, a major European bank processes over 2 million transactions per second by keeping core banking functions on-premises while using cloud resources for customer-facing applications, resulting in 40 percentfaster processing speeds.

Enhanced security and compliance are achieved as banks implement multiple layers of protection while maintaining control over sensitive data. A leading Asian bank reduced security incidents by 45 percent after adopting hybrid cloud, ensuring compliance across 15 countries.

The hybrid approach balances innovation and risk management. Banks can rapidly innovate using public cloud services while keeping sensitive operations secure on-premises. DBS Bank successfully migrated 80 percent of workloads to cloud environments while maintaining strict security controls, halving their time-to-market.

Operational excellence and scalability are also benefits. Banks deploying hybrid cloud can launch new services three times faster, with operational cost reductions of up to 35 percent. During the recent surge in digital banking, institutions using hybrid cloud scaled their services four times faster than those relying solely on traditional infrastructure, all without compromising security.

 

Red Hat Open Hybrid Cloud

Red Hat’s open hybrid cloud platform enables financial institutions to run applications consistently across any environment—from on-premises to edge and cloud infrastructure. This solution directly addresses the challenges of modern banking while providing a secure path to innovation.

Key Advantages of Red Hat Open Hybrid Cloud

  1. Open-Source Foundation: Red Hat’s open-source approach ensures transparency, rapid innovation, and freedom from vendor lock-in. The platform benefits from continuous improvements from a global developer community while maintaining enterprise-grade stability.
  2. Enterprise Kubernetes with OpenShift: Red Hat OpenShift provides a robust container platform that enables banks to build and deploy modern applications quickly and securely, modernizing applications while adhering to strict security and compliance requirements.
  3. Comprehensive Support: Red Hat offers 24/7 enterprise support, including security patches and technical expertise. This ensures banks have the backing needed for mission-critical operations.
  4. Enterprise-Grade Security: Built-in security features include automated compliance checks, integrated authentication, and container-level isolation. The platform is regularly audited and updated to address emerging threats.

How Red Hat Open Hybrid Cloud Helps Banks

  1. Enhanced Data Protection: Red Hat’s multi-layered security approach helps banks protect sensitive data through encryption, access controls, and automated security policies, maintaining data sovereignty while leveraging cloud capabilities.
  2. Accelerated Innovation: Banks can develop and deploy new services up to three times faster using OpenShift’s automated workflows and DevOps tools, responding rapidly to market demands while maintaining security and compliance.
  3. Simplified Operations: Red Hat’s automation capabilities help banks manage complex infrastructure more efficiently, reducing operational overhead by up to 35 percent while improving service reliability.

 

Realizing the Future of Banking with Red Hat

Banks face challenges that threaten operational stability and growth—from service disruptions to stringent regulations and customer concerns about data privacy and security. The pressure to adopt cloud technologies is intense, but the transition must be secure and stable.

Red Hat Open Hybrid Cloud platform offers a practical path forward. By enabling banks to maintain critical data on-premises while leveraging cloud capabilities for innovation and scalability, it addresses the core challenges of modern banking. Real-world results show that banks implementing Red Hat’s hybrid cloud strategies achieve up to a 40 percent reduction in service disruptions and a 35 percent improvement in operational efficiency, all while maintaining robust security controls.

Read More: What is Virtualization: Benefits, How It Works, and Types

 

Get Red Hat Open Hybrid Cloud from Virtus

Transforming your banking infrastructure requires careful planning and expert guidance. Virtus Technology Indonesia (VTI), part of CTI Group’s powerful technology ecosystem, is ready to guide your institution through the journey of hybrid cloud adoption. Our partnership with Red Hat enables us to deliver cutting-edge solutions tailored to the unique challenges of modern banking.

By choosing us as your Red Hat authorized distributor, you gain more than technology—you secure a partnership built on deep industry expertise and proven success. We understand the delicate balance between innovation and security that banks require and are committed to helping you achieve both through Red Hat’s comprehensive hybrid cloud solutions.

The future of banking belongs to institutions that embrace smart modernization today. Whether you’re looking to reduce operational costs, enhance security, or accelerate service delivery, Virtus has the expertise to help you achieve your goals with Red Hat Open Hybrid Cloud platform. Contact us today and discover how we can help transform your banking operations.

 

Author: Jeko Reza

Content Writer CTI Group

Share to:

VIRTUS PARTNER ACADEMY

Virtus newest benefit program for Business Partners. Virtus Partner Academy is an online IT training course with a comprehensive curriculum that can be accessed at any time and from any location.

SPEND MORE GET MORE

VIRTUS INCENTIVE PROGRAM

for Business Partner

Privacy Policy

  1. Privacy Policy – PT Virtus Technology Indonesia 

At PT Virtus Technology Indonesia, ensuring the privacy and security of your information is of utmost importance to us. As you navigate through our website, Virtus Technology Indonesia, collectively referred to as this “Website”, we strive to create a safe and trustworthy environment for all users. 

This Privacy Policy establishes the terms governing your use of our website between you (“you” or “your”) and PT Virtus Technology Indonesia. By accessing our website, you acknowledge that you have reviewed, understood, and consent to be bound by this Privacy Policy. 

  1. Information We Collect 

When utilizing or engaging with our Website, we may gather or receive various types of information, collectively referred to as “Information”, including but not limited to: 

  • “Personal Information,” such as your name, email, contact details, or any other personal content provided to us via forms on our website or other means of communication (e.g., email, phone, mail, etc.). 
  • “Technical Information,” such as browser type, operating system, device type, IP address, and similar technical data typically obtained automatically from browsers or devices when interacting with our Website. This may also encompass the referring URL that directed you to our website. 
  • “Usage Information,” such as the pages visited on our website, click activity, searches conducted, and other related data on how you have utilized our website. This category may also encompass details regarding your interaction with emails, including whether you opened, clicked on links, or received them. 

      We acknowledge that certain Technical Information or Usage Information may be considered personal data, either independently or when combined with other data, under various laws and jurisdictions. We are committed in handling such data in accordance with applicable laws and regulations. 

      1. The Methods We Use to Collect and Receive Information 

      Depending on the type of Information, we collect or receive it through various channels, including but not limited to the following conditions: 

      • When you voluntarily share Information with us. For instance, when you subscribe to our newsletter or fill out our online form to request contact.  
      • By using cookies and similar technologies. These technologies help us analyze how our Website is utilized and tailor content that is pertinent to you. They also assist in delivering more relevant advertisements on our own or third-party sites. 
      • Information obtained from third-party sources. This encompasses Information acquired through various business support tools and services we utilize, such as Website, analytics services, etc., as well as public sources like social media sites. We may merge the Information from these sources with other data we possess to maintain updated records and provide you with pertinent content. 
          1. The Purposes 

          We utilize Information for the following purposes: 

          • Processing your inquiries and responding to your requests, such as when you reach out to learn more about our products or services. 
          • Sending you information related to our services and products that we believe may be of interest to you, such as an invitation to our upcoming events, follow-up by WhatsApp blast and/or call, newsletters, or updates on products and services. These communications are sent to you either based on your explicit consent or when we have a legitimate interest in marketing our products and services. You always have the option to opt out of receiving invitation, newsletters, and/or updates on products and services. 
          • Understanding how you interact with our Website and tailoring it to align with your interests, past actions, and preferences. We do this to enhance our Website, diagnose any issues, and improve your experience while navigating through them. 
          • Preventing fraud or harm to us or any third party, and ensuring the security of our network and services, which is in our legitimate interest. 
          • Complying with our legal obligations and exercising and enforcing our legal rights as necessary for PT Virtus Technology Indonesia. 
          • Utilizing certain third-party marketing and advertising networks to assist in marketing our products on our website and third-party Website. 
            1. Who We Share Information With 

            To facilitate our business operations and the functioning of our Website, we may disclose Information to various third parties, including: 

            • Our global branches and subsidiary companies. 
            • Third-party service providers aiding in the operation of our Website, such as hosting companies, recruitment platforms and agencies, payment processors, business management, and email distribution service providers, and similar service providers. These entities are authorized to use your personal information solely to provide these services to us. 
            • When compelled by law, such as to comply with court orders, search warrants, regulatory orders, subpoenas, and other lawful requests from public authorities, including those for national security or law enforcement purposes. 
            • Legal authorities, consultants, advisors, or service providers required to investigate, respond to, or prevent fraud, or to ensure the security of our network and services and safeguard the well-being of PT Virtus Technology Indonesia
            • In the event of a merger and/or acquisition involving PT Virtus Technology Indonesia, Information may be transferred to the merging or acquiring entity, as well as to any advisors representing parties involved in discussions related to such merger or acquisition. 
            • Principal, resellers, partners, sponsors, or service providers acting on our behalf in conjunction with the offering of PT Virtus Technology Indonesia’s products or services. 
            • Third-party marketing and advertising networks assisting in the promotion of our products on our Website and on third-party websites, such as Google for remarketing ads across the Internet. 
            • PT Virtus Technology Indonesia may also disclose general aggregate and anonymized information (e.g., statistical data) pertaining to the use of its Website. 
                1. Cross Border Data Transfers 

                • We may need to transfer Information to countries where we and/or our service providers operate. These countries may have different data protection laws compared to the country where the data originated, potentially offering different levels of protection. By using our Website, you consent to such transfers. In cases where applicable to the services provided, we will establish agreements with our service providers to ensure a level of privacy consistent with the terms of this policy. 
                • Regarding the collection, use, and retention of personal information transferred from Indonesia, please note that PT Virtus Technology Indonesia remains compliant with all relevant laws concerning such transfers.
                1. Protecting Your Information 

                We aim to uphold top-tier security standards throughout our business operations. We have adopted suitable technical and organizational safeguards aligned with industry best practices. These safeguards are devised to prevent unauthorized access or unlawful handling of Personal Information and to mitigate the risk of accidental loss, destruction, or damage of such information. As part of these efforts, we have instituted several policies and procedures to guide us, covering aspects such as asset management, access control, physical security, personnel security, product security, cloud and network infrastructure security, third-party security, vulnerability management, security monitoring, and incident response. 

                1. Information Storage and Retention 

                We may store Information on both our own servers and those managed by third-party data hosting providers. As explained in Section 5 above (Cross Border Transfers), these servers may be situated globally. We will retain your Personal Information only for as long as necessary to fulfil the collection’s intended purpose. Additionally, we may retain your Personal Information for the duration required to pursue our legitimate business interests, address any legal claims, and ensure compliance with legal obligations. In instances where we utilize your information for direct marketing, we will retain your data until you choose to opt-out of receiving marketing materials; however, certain information may need to be retained to maintain a record of your request.  

                1. Modifications to This Policy 

                PT Virtus Technology Indonesia reserves the right to amend this Privacy Policy at any time. In the event of a significant change, we will provide notice on this page and/or adjacent to the link leading to this page. These updates will become effective immediately for new Information collected or provided from the date of the update, and within thirty (30) days for any Information collected or provided to PT Virtus Technology Indonesia prior to the update. If you do not agree to the terms of the revised policy, please contact our Legal Department using the contact details provided in Section 11 below. We encourage you to periodically review this page for any updates.  

                1. Your Choices 

                We offer you various options regarding the use of Information in relation to: (i) our marketing activities; and (ii) our utilization of cookies and similar technologies for interest-based advertising and website usage analysis 

                1. a. You can choose to discontinue receiving our newsletter or marketing emails by following the unsubscribe instructions included in these emails, adjusting email preferences in your account settings page, or contacting us through PT Virtus Technology Indonesia.

                1. b. Moreover, the laws in some jurisdictions may grant you various rights concerning our processing of certain Information. These rights may include:

                  i. The right to withdraw previously provided consent; 

                  ii. The right to access specific information about you that we process; 

                  iii. The right to rectify or update any Personal Information; 

                  iv. The right to request the erasure of certain Information; 

                  v. The right to temporarily suspend our processing of certain Information; 

                  vi. The right to receive Information in a common machine-readable format; 

                  vii. The right to object to our processing of Information for direct marketing purposes or when we rely on legitimate interests as the lawful basis for processing your information; and 

                  viii. The right to file a complaint with the relevant data protection authority. 


                  We will address your requests promptly. Please note that these rights may be subject to limitations under applicable law. For further information on these rights or to exercise them, please contact PT Virtus Technology Indonesia at: legal@computradetech.com

                1. Social Media and Third-Party Services 

                Our Website may include a blog with a ‘comments’ section and several social media features, such as a ‘share’ button or links to third-party websites and services like Facebook, X, YouTube, LinkedIn, and Instagram. When utilizing these features, certain information may be gathered by these third parties, such as your IP address or the specific page you are visiting on our website. Additionally, these third parties may set cookies to ensure the proper functioning of the features. Any data collected by these third parties is subject to their respective privacy policies. We encourage you to thoroughly review the privacy policies of these third parties. 

                1. Contacting Us 

                If you have any questions or concerns regarding this Website Privacy Policy, the information we collect, PT Virtus Technology Indonesia‘s practices, or your interactions with the Website, please feel free to contact us. You can reach us via email at legal@computradetech.com or by physical mail addressed to: PT Virtus Technology Indonesia (Centennial Tower 12th Floor, Jl. Jend. Gatot Subroto Kav. 24-25, Jakarta – 12930, (021-80622288).