Cloud computing allows secured scalability of finance companies, assisting in the development of new financial services that allow safer and better collaboration with third parties.
As per a recent report by Mordor Intelligence, the financial cloud market is anticipated to record a CAGR of 22.3% over the forecast period of 2021-2026 globally. Here are a few attributes of cloud computing in financial services.
Cloud computing operates with robust efficiency, driving cost savings. Companies need to scale the amount of space required to shift the cloud up and down to ensure that companies only pay for what is used. Additionally, moving the core functions to the cloud instead of maintaining mainframes on-premises can eliminate the expense of the mainframe itself.
Personalized Customer Experience
The cloud allows businesses to house numerous data in a secure location. This enables them to personalize services for customers. With the help of the data cloud, companies have a common governed location for all the types of data that is able to ingest data from new sources. Organizations acquire a 360-degree view of customer behaviors and preferences from multiple inputs. A complete customer view is crucial for a successful personalization strategy as it enables organizations to target high-value customers and ensure they have a good experience at every touchpoint.
When embracing cloud-based technology, security is the chief issue for financial companies as it stores and processes confidential data. However, many businesses moving to the cloud are strengthening their security infrastructure. With the increase in data breaches and cyber-attacks, it is difficult for a financial organization to establish a secured IT environment safe from hackers.
While a traditional IT setup brings the entire network down with something as simple as a phishing email attack, cloud computing provides a resilient security architecture and undergoes stringent security checks at intervals.
Innovation of Agile
Accessing a diverse pool of configurable computing resources can elevate a financial institution’s ability to innovate by enhancing agility, efficiency, and productivity. Deployment of the public cloud enables financial institutions to direct internal resources towards innovating and delivering new products and services to market more efficiently. At the same time, the cloud also provides flexibility for new businesses. Cloud resources allow companies to assess new ideas without extreme investments in supporting systems.
Storage is one of the substantial benefits of moving to the cloud. The finance industry generates vast amounts of data on any given day due to hundreds of card transactions, stock market transactions, loans, and insurance documents and payments. Unlike the traditional IT setup where regular upgrades and maintenance are required, Cloud computing allows companies to store unlimited data ensuring there are no incompetencies with the increasing amount of data.
Also Read: How DeFi can Benefit the Finance Industries
DevOps Enhancement and Effective Compliance Tracking
Cloud-integrated FinTechs can quickly unleash new ideas and product iterations for rapid testing and rollouts. At the same time, the provisioning of environments while monitoring for compliance enables impressive adaptability with reduced risk. Cloud solutions also make compliance simpler, with their ability to process vast amounts of data compliance tracking needs at lightning speed. This allows better flexibility and reliability needed to meet the standards as a business gradually scales.
Cloud computing is revolutionizing the way finance companies do business. It is a vital enabler for a thriving data economy and service delivery, seamlessly connecting banks with other financial institutions, customers, and FinTech innovators. When used effectively, cloud computing can control costs more efficiently, improving the flexibility of the business model, allowing functional specialization, and improving resilience.