Lately, more and more organisations are adopting innovative cloud applications to leverage competitive edge in today’s extremely challenging business environments. The happening transformational changes are loud and distinct, across every industry vertical.
As organisations slowly and steadily make a transition from ‘on-premise’ to cloud-based services, typical business applications like customer relationship management (CRM) and enterprise resource planning (ERP) will stand out as the biggest market for cloud services spending.
Growing Cloud Computing Trends in the Financial Services Industry
The dramatic shifts taking place in the banking industry demand new mechanisms to optimise profitability and returns. Cloud technology allows for secure deployment of productive options that enable banks to leverage enhanced customer experiences, effective collaboration, and improved speed-to-market all the while increasing its IT efficiency.
Banks that utilise the power of cloud computing for digital transformation and that helps to connect with global financial systems, respond quickly to economic uncertainties while being ready to take on business challenges like evolving customer expectations.
— TalentBase NG (@TalentBaseNG) September 16, 2016
Generating cues from other organisations that share the same goals of deriving value from the cloud, securing data, and outperforming competition at lowered costs, the banking, and financial services sector is now studying the cloud in a whole new way.
Gartner predicts, by the end of 2016, shrinking return on equity will drive more than 60% of banks worldwide to process a major part of their transactions in the cloud.
6 Key Advantages of Cloud Computing in Banking
Unlike traditional IT infrastructures and legacy systems that most banks are used to, the cloud provides agility and flexibility in deployment of IT assets that efficiently handle the inflow of big data. Striking advantages of banking in the cloud include –
1. Cost Curtailment
In cloud computing, banks will not have to invest heavily in dedicated hardware, software, and related human resources. Cloud makes things easier for banks to update their IT infrastructure on a pay-on-demand cloud model, where they pay only for the hardware and software required.
2. Improved Scalability and Flexibility.
The cloud offers banks the capacity to respond quickly to changing market dynamics, customer behaviour, and technology needs. Banks, if required, can scale up and scale down the technology requirements according to their need. The ability to react quickly will be a major competitive edge in the future markets.
3. Increased Efficiency
Banking in the cloud brings forth improved productivity ratios and operating leverage. Its inherent features leave enough room for easy integration of new technologies and applications in the future. Today, as business operations align more closely with technology, the cloud provides banks an opportunity to drive simplicity into their systems by easily shunning out complexities.
4. Speedy Customer Response
Cloud computing integrates provisions for creating bundled products and services that can be easily developed and launched either on a stand-alone basis or in partnership.
The cloud heightens the bank’s computing power to meet demand peaks, and treasury solutions, without worrying about the latest technology updates. This enables corporates to get instant access to the banking system using a web browser from anywhere at any time.
5. Stronger Client Relationships
The ultimate computing potential of the cloud and its alliance with big data will empower banks to build systems that are competent in rendering customised insights for strengthening and forging sustainable customer relationships.
6. Enhanced Client to Client Interactivity
As of now, the banking activities involved in processing payments is grossly inefficient due to the existing traditional technologies. Transactions in the cloud seamlessly ease the payment process, connecting clients with their clients, grouping them together on shared cloud applications.
It is high time to realise that cloud is a transformational model, which can propel the banking business to the next level. Banks should make it a point to gradually yet steadily make a shift to cloud architectures for maximised productivity and profitability.
Want to leverage the power of cloud for your bank? Get in touch with our expert consultants today!
Author: Kishore Kapoor
Kishore Kapoor an industry veteran of 31 years in global banking technology. A Founder & CEO of eKutumb.com – World’s first marketplace for enterprise software delivery and consulting business by creating value for all of industry stakeholders involved (customers, partners, individuals and investors) through a disruptive and trans-formative approach of doing business.