In today’s competitive banking environment, cloud has overtaken on-premise deployment to become the rule rather than an exception. As we begin strategizing for a post-COVID world, one thing is clear – the scenario demands for digitally-enabled banks, supported by cloud.
Cloud enables financial institutions to be more agile, scalable, and flexible with its ability to operate in a dynamic, contact-less environment. Migrating traditional data centers to a cloud server helps in increasing security, boosting data-handling capacity, and providing access to new delivery channels.
Banks can unlock the following five benefits with cloud
1. Scalability and Flexibility
Architecturally, cloud-based infrastructure is connected to multiple servers simultaneously. This allows banks to increase or decrease their processing capability based on evolving market conditions without any additional investment. The ability to rapidly scale cloud computing capacity allows banks to keep up with customers’ demands and remain competitive in a dynamic ecosystem.
2. Cost Optimization
Cloud plays an important role in reducing the total cost of ownership of software infrastructure by minimizing hardware equipment costs and shrinking IT expenditures. Transitioning from legacy systems to a more efficient, cloud-based setup eliminates the overheads involved in developing and maintaining servers. For this reason, many banks are moving to a digital-only model, leveraging cloud to offer systematic processes and for quickly adapting to organizational changes.
3. Increased Process Efficiency
The adoption of a cloud-based model helps banks to streamline their processes and deliver secure and touchless services, especially relevant in the current business environment. Processes like online payments can be further simplified by connecting buyers and sellers on a common, cloud-enabled digital platform. Cloud also enables the banking sector to develop new products and services that reflect the pulse of the market, based on data analytics.
4. Agility and Innovation
Cloud can allow banks to innovate and transform their customer experience by streamlining processes and utilizing new-age technologies, like artificial intelligence, machine learning, and robotic process automation. Cloud-based infrastructure also provides quick access to software and application updates without requiring additional investments, making banks more agile and responsive to changing market trends.
5. Enhanced Data Security
Cloud equips banks with control over data storage and visibility into all transactions. Banks can leverage cloud to continuously monitor their end-to-end processes and immediately recognize security breaches, such as money laundering and fraud. Cloud-based infrastructure allows banks to respond rapidly to potential risks and safeguard their customers’ data.
Cloud has the potential to transform a bank’s digital landscape—helping to achieve their business goals, ensure compliance and data security, and deliver an omnichannel customer experience. While selecting the ideal cloud services partner, banks must consider many factors, including business strategy, regulatory compliance, technical compatibility, and cybersecurity.
As digitization swiftly becomes the norm, banks can harness the power of cloud to gain a competitive edge and stay relevant in the dynamic business environment.
- Five Benefits of Deploying Cloud in Banking - June 19, 2020
- Past, Present, and Omnichannel Based Future of Banking - February 12, 2020