CLOUD COMPUTING IN BANKING

Updated on 22 November 2022

By Aishley Smith

16 min read 5 views

Updated on 22 November 2022

Share this article

Copy Link Link Copied

According to a survey by O’Reilly, cloud adoption is rising across industries at a steady rate, with over 90% of organizations using cloud computing technology. The growth in adoption rate is evident from the last year survey that reported 88% organizations using the cloud across the globe. Now while industries have started relying on cloud services for their varied data and operational needs, there is one industry that is taking its sweet time to adopt the idea on a holistic level – Banking.

With banks and financial institutions taking time to check every aspect of cloud from the security and privacy angle, cloud computing in banking is moving at an overly cautious speed.

Benefits of cloud computing for banks

With banks taking a cautious but steady move towards IT cloud infrastructure, it is important to highlight the benefits of cloud computing in the banking sector.

Better data security

With frequently updated software, cloud computing for banks proves to be a security-first approach for a bank’s operations. However, ensuring that the intent is met, it is very important to choose cloud computing services that meets the following criteria:

Compliance and certifications
Performance and reliability
Next-gen technology inclusion
Migration support
24*7 service support

Lowered infrastructure cost

There are no fixed statistics, but the reliance of banks on on-premise systems remains a global phenomenon. Now, while through this reliance, they are able to safeguard users’ data, a big problem with it is the complex-level adaptability to organization-level changes. Any change in the IT infrastructure, workload management, etc. requires time – a time that leads to massive downtime on the customer’s ends.

By adopting cloud services for banks, the IT infrastructure changes become more manageable, while they are able to scale their offerings on an immediate basis.

Greater operational efficiency

Cloud environment increases the efficiency of a banking institution by manifold. By hosting their services on cloud, banks can enjoy benefits like:

Quality control
Disaster recovery
Flexibility
Loss prevention
Risk management

By hosting banking portals on the cloud, the institutions are able to focus on bringing their fixed and variable expenses down with a guarantee of 99% uptime.

Access to software applications

Cloud computing in banking gives the institutions access to CRM and ERP software applications which are engineered to better their client relations and employee experience. Since these apps are a part of the SaaS model, the banks have complete control over them in terms of what data goes into them and scope of personalization.

Contributes towards business continuity

Through cloud computing, the banking firms get greater levels of fault tolerance, protection of data, and disaster recovery. Moreover, cloud computing provides a massive-level of redundancy and backup at low cost. The technology gives banking institutions every ingredient to make it future-proof.

Since the cloud is on demand, the infrastructure investment gets minimized, which in turn lowers the set-up time. All of this lowers the development cycle for new products, leading to greater efficiency and expedited customer response.

Usage-based payment

For an institution as traditional as banking, the fear with technology is too deeply instilled. So, when it comes to adopting new technology, cloud gives them the freedom to adopt the service on a pay-as-you-go model.

Green IT

Transferring the banking services on cloud lowers the energy consumption and carbon footprint. It also leads to minimizing the idle time, which makes the utilization of computing power extremely efficient.

Now that we have looked into the glaring benefits of cloud computing for financial services, it is time to choose the best cloud services for banks.

Learn more: https://appinventiv.com/blog/cloud-computing-service-for-banking/

NEET / Medical