“While 91% of financial institutions are actively using cloud services today (or plan to in the next nine months), only 9% of mission-critical regulated banking workloads have shifted to a public cloud environment,” – according to a 2020 IBM Banking on Open Hybrid Multi-cloud Survey.
However, it is critical for financial institutions to start replacing outdated and inflexible on-premise infrastructure that has become increasingly difficult to update and expensive to maintain.
Successful organizations must look for flexible, scalable solutions that are both responsive and efficient now more than ever.
One key technology is Cloud Computing.
Cloud computing solutions have acted as a catalyst for digital banking transformation, delivering benefits to both front and back office operational models. These advantages will help financial institutions become more future-ready while also providing a springboard for increased customer value and revenue.
Why should the Cloud be a Top Priority for Financial Institutions?
1. Keep up with Customer Demands:
Cloud-based infrastructure is designed to connect to multiple servers at the same time. This enables banks to increase or decrease their processing capacity in response to changing market conditions without incurring additional costs. The ability to rapidly scale cloud computing capacity enables banks to meet customer demands while remaining competitive in a volatile ecosystem.
2. Achieve Greater Agility:
Cloud technology enables organizations to swiftly respond to changing market conditions by leveraging big data analytics and data science to achieve higher customer satisfaction and improved operational productivity agility. The opportunities range from responding to changing consumer or competitive dynamics to allowing for the scalability of technology use.
3. Unlock Values from Customer Insights:
Customer data contains valuable insights that can lay the groundwork for a level of personalization and proactive engagement across all channels that would otherwise be impossible with legacy infrastructure. This gives Banks and Financial Institutions to trigger ideal actions based on customer insights that drive conversion, engagement, and loyalty.
4. Reduced Time-to-Market for New Innovations:
Cloud technique offers great ability to shorten product deployment life cycle and simplify usability tests, allowing financial firms to test innovative ideas in real-time and respond rapidly to customer acceptance (or rejection). Cloud solutions also enable open banking, broadening the solution set available to consumers across traditional and non-traditional financial services.
5. Safeguard Customer Data:
Banks can use the cloud to continuously monitor their end-to-end processes and detect security breaches, such as money laundering and fraud, in real time but also enables banks to respond quickly to potential risks while also protecting their customers’ data.
6. Cost Reduction:
One of the most significant advantages of cloud computing in financial services such as banking is cost reduction. When customers are manageable, banks do not require a high-end infrastructure. They can spend money on business initiatives and revenue generation rather than on infrastructure for data storage.
Banks and Financial Institutions can leverage the power of the cloud to gain a competitive advantage and remain relevant in a volatile business environment. Banks must consider a variety of factors when selecting a cloud services partner, including business strategy, regulatory compliance, technical compatibility, and cybersecurity. At Entrans Technologies, We help you land on the future of banking to gain the competitive edge and build a sustainable business model.