Banking and financial sector basically operate over the vast IT infrastructures that deal with Big amount of data on a day-to-day basis.Banking organizations and the financial sector as a whole has been relatively slow in adopting the cloud. Their strategy has been to wait and watch on how the cloud performs both from a security as well as robustness of infrastructure point of view.
How cloud computing will help financial sector to improve performance:
Cost Saving –
With cloud computing banks will not have to invest in hardware, software, Dedicated Servers and manpower to monitor the same. Also the unique nature of cloud computing allows financial institutions to pick and choose the services required and pay for whatever they have consumed.
Great scalability and flexibility –
The cloud gives bank ability to respond quickly on customers’ demands, which gives a competitive adge. They can scale up and scale down technology according to need.Improves efficiency – Due to standardization in the cloud, it is easy to integrate new technology and applications. This brings clients close to their clients, i.e transaction banking eases payment between buyers and sellers.
Cloud is available on demand so less infrastructure investment is required. Also financial institutions experiences shorter development cycle for products which leads to faster and more efficient response to the need of a customer.
Managed backup –
Cloud can manage banks critical data, to ensure in the event of disaster a bank can bounce back rapidly and easily.
Cloud options used by financial sector:
Card and mobile payment processing –
Card and mobile payment processor are now operating on the cloud. The processors on cloud provides financial institutes and banking sector specialized expertise needed in card processing. They also provide fraud detection, security and uptime delivery.
Core banking –
Now a days cloud service providers understand the financial service space and provide turnkey Banking space that gives online banking, electronic bill paying.
Human resource and talent management –
Financial service companies are considering cloud based HR services that coffers HR software like payroll, benefits, talent management. This has resulted into better recruitment for companies.
Infrastructure as a service –
To avoid costly hardware and software upgrade banks are moving their application development and testing to cloud providers.
Below are some predictions related on financial sectors with cloud computing:
- 69% of customers already use the internet to buy financial products online.
- 50% of world’s bank will disappear through cracks opened by digital disruption of the industry.
- Mobile banking usage will exceed 1.75 billion by 2019 representing 32% of the global population.
Future of financial industry with Cloud technology:
In future, Cloud technologies along with analytics, mobile technologies and big data will allow banks to unlock value from existing data. This will lead to address risk management and drive customer engagement. By standard development processes, scalability and collaboration provided by the cloud, the banks will be able to create new and innovative product and service offerings for their customers.