The Role Of Cloud In Ensuring Resilience In Financial Services
The advancements of technological innovations have prompted financial institutions to be more resilient by adopting cloud collaboration. The introduction of cloud services is helping financial institutions to benefit in remarkable ways, both ‘above the cloud’ and ‘below the cloud’ operations. It has helped create new business frontiers, enhance business innovation, build resilient operations, cost-efficient models, and improve IT security.
Cloud computing is continuing to transform the way companies operate. One industry where the adoption of cloud computing has been relatively slow in the financial services industry. Cloud computing has quickly gained momentum in recent years and is becoming widely adopted across multiple industries, including Financial Services.
How is Cloud Ensuring Resilience In Financial Services?
The influence of digitalization is driving a greater degree of interconnection in providing better services. Changing business models and market demands have forced banks and financial institutions to rethink their approach to innovation. As financial organizations faced many challenges before, they look out to accompany technological partners and cloud-based solutions for their journey ahead. These technological advancements put forth strategies to positively impact and provide continuous support in a competitive world.
How Does Cloud Computing Benefit The Financial Industry?
Let’s now check out some ways in which Cloud can benefit companies within the financial services industry.
Dealing With Security Threats:
While embracing any new technology and moving away from the traditional systems, especially the cloud-based offerings, maintaining safety and security automatically tops the priorities. But once the tech giants have addressed the worry through innovative research and technologies, many businesses are shifting to the Cloud to strengthen their security infrastructure.
As the biggest headache is the increasing number of data breaches and cyber-attacks, financial services need to establish a foolproof IT environment safe from hackers, which, in fact, is arduous within the traditional IT setup. Even a simple phishing email attack can bring the whole network down within no time. As a result, this will cause a loss of wealth and irreparable damage to credibility. Cloud computing champions this scenario as it provides highly resilient security architecture and undergoes stringent security checks at regular intervals, and stays up to date.
Maintaining Cost Effectiveness:
Cost optimization is turning out to be a key factor that forces the financial service industry to shun the traditional setup. And also, it should look forward to cloud computing. As a matter of fact, Cloud helps to curtail the expenses of servers and network systems, and other core IT Infrastructure. Shifting into a cloud computing package atmosphere brings down the total cost of ownership and maintenance of the Infrastructure from time to time.
Servers And Big Data:
One of the significant benefits of moving to the Cloud is its mouthwatering storage capacity. As we all know, the finance industry generates loads of data on a routine basis due to millions of transactions. It may be in the form of cards, loans, insurance credits, and payments. Storing multiple years of financial data can take up a lot of space on traditionally used internal servers. Unlike the traditional IT setup, Cloud computing provides access to unlimited storage. It ensures businesses stop worrying about increasing amounts of data. The Cloud delivers vast volumes of easily scalable storage that can be increased or decreased within no time through a cloud dashboard.
Financial institutions need to organize millions of contacts over a while. The confidential and highly sensitive details of customers, clients, investors, and vendors need to be systematically organized and stored within a CRM. Even though they have more than sufficient resources for all such tasks, they can notice spikes in different sectors at certain times. A spike could also be seen when the respective governments declare a new or change of policies. This ultimately may pose challenges to the efficiency of their resources. Cloud computing comes in very handy in such situations as it easily scales resources without the requirement of any intervention.
Cloud vendors take very stringent means to ensure that the users violate no compliances. Compliance bodies are established and work with some of the major cloud vendors for monitoring purposes. However, it is recommended that financial institutions should have a clear-cut idea of even minute details before signing up with any vendor.
Cloud computing has become the darling of the masses as it enables employees to work on the go. Anyone can use their personal smartphones, tablets, or laptops for real-time monitoring and analysis. It helps the stakeholders to access emails, proprietary business applications, and CRM tools as and when required in and out of the office round the clock.
Infrastructure As A Service (IAAS):
The Cloud extends IAAS to help reduce costs on deploying, testing, and running applications on in-house resources. It gives financial services a testing platform for new and improved applications and projects. It also offers super high-level computing and processing capabilities that are beyond human capabilities. This aids financial firms to make quick decisions and streamline their operations to influence profits while maintaining strong compatibility positively.
In conclusion, Cloud-based service providers should ensure that their services will function to achieve long-term strategic values. And also, provide better connectivity for the organization. The service providers should help these FI’s to get a more accessible route towards cloud destination. This simplicity in operation must allow financial institutions to operate with greater flexibility and efficiency.