The financial sector has never been against the increasing popularity of cloud computing. The largest financial organizations have noticed how cloud technology has put a positive impact on various parts of the industry such as banking and insurance. They might not be screaming from the top of the roof but they surely agree with the fact that the cloud phenomenon has helped them in simplifying their operations and function more effectively.
According to a survey conducted by Skyhigh Networks, to check how comfortable financial companies are with utilizing cloud technology. The survey showcased that the average financial services company uses over 1000 cloud services.
The report was based on the survey that collected data from 3.7 million employees at insurance companies, banks, credit card companies and other financial institutions. But what is the reason that makes these companies comfortable in using cloud-based services? Let’s have a look at the benefits that cloud computing offers to financial institutions. Fintech News
Benefits of Cloud Computing in Financial Industry
Without any doubt, security is the prime concern when it comes to embracing any latest technology, particularly the cloud-based offering. However, many businesses are moving to the cloud nowadays to strengthen their security infrastructure.
Because of the rise in the number of data breaches and cyber-attacks, every year, it is difficult to have a full-proof IT environment safe from hackers. Within a traditional IT setup, something as easy as a phishing email attack, albeit in a sophisticated manner, has the capability to bring down the whole network.
Cloud computing provides a strong security infrastructure and goes through a stringent security check at regular intervals.
Cost optimization might not be a priority for the businesses of this industry but one certainly cannot complain about the collateral advantage that comes with the package of cloud technology. Cloud will help in cutting down expenses of servers and data centres as well as core IT infrastructure. This eliminates the total cost of ownership and maintenance of the infrastructure. It is the main reason for 47% of the enterprises for cloud migration.
Big Data & Storage
One of the biggest benefits of moving to the cloud is storage. The finance industry generates an incredible amount of data on any given day because of millions of card transactions, stock market transactions, insurance documents and payments and loans. Unlike the traditional setup of IT where constant upgradation and maintenance is needed, cloud computing gives unlimited storage to secure businesses never have to worry about the rise in the quantity of data.
Even though financial organizations have more than sufficient resources assigned for all the tasks they perform effectively on any given time, it is possible for them to see spikes in various sectors at particular times. They might also see a spike when their respective governments announce a new or change of policies in the finance sector that challenges the efficiency of their resources. Cloud computing simply scales resources without the need for any intervention to make sure the duties are performed without any malfunctions.
Cloud vendors take very strict measures to ensure that in joining with and offering services to finance industries, no compliance is violated by any party. Compliance bodies work with some of the major vendors of cloud technology to monitor purposes. However, financial organizations should make it a point to discuss every minute details before signing up with any vendor.
Cloud computing helps employees to work on the go. They can utilize their personal smartphones and tablets for real-time monitoring and analysis, as well as to access company email, CRM tools, and proprietary business applications when they are out of the office or out after business hours.
Steps for successful cloud implementation in a financial institution
As per the survey by Finextra Research, 83% of people who responded said that the existing core technology of their banks can no longer support the requirements. Moreover, nearly 90% are in favour of involving SaaS or cloud-based services as a part of the new infrastructure.
As the rate of adaptation of cloud continues to grow, financial services companies must ensure that they do not disappear into obscurity by failing to keep pace with these important trends.
As the industry progresses furthermore towards full digitisation, the advantages of the cloud will be more important to ignore. This makes it crucial for companies to act now in order to tackle an unpredictable and continuously changing landscape of financial services.
The cloud is taking the world of technology and all sectors by storm. In particular, Finance industries should not delay in transitioning to it.
Aashish is currently a Content writer at FintecBuzz. He is an enthusiastic and avid writer. His key region of interests include covering different aspects of technology and mixing them up with layman ideologies to pan out an interesting take. His main area of interests range from medical journals to marketing arena.