How cloud computing benefit financial services and it could benefit your business

How cloud computing benefit financial services and it could benefit your business

Cloud computing refers to the delivery of computing services over the Internet, including servers, storage, databases, and networks. Users generally pay for only the resources they wish to use, helping companies reduce operational costs and flexibly scale their business as necessary.

According to research by MarketsandMarkets, the cloud computing industry is set to reach $29.47 billion in revenue just from financial services by 2021. With the varying ways, cloud technology has enhanced business, the projection isn’t surprising.

From the security, it offers to its ability to facilitate collaboration among users, here’s why your business can benefit from moving to the cloud.

Greater efficiency and agility

With all your business resources online, workers can access company data anytime, anywhere. The cloud stores your data in a centralized database to ensure information is consistent across several branches and company-registered devices.

Cloud platforms also eliminate the need for manual infrastructure or software upgrades. These services typically perform automatic updates, allowing your IT staff to focus more on higher-priority tasks. And because cloud services can be easily customized to suit clients' needs, companies can grow, enter new regions, and restructure their businesses with greater convenience.

Scalability

Cloud users only need to invest in the resources they wish to use. It’s a “pay-as-you-go” business model that helps companies save money. In fact, studies show that 65% of cloud-using organizations consider this their top reason for adopting such services.

Traditionally, business owners would pay for extra hardware and licenses as a way of “future-proofing” their company, ensuring they had the maximum storage capacity for future data files and resources. The cloud, however, offers service packages that provide you with the appropriate capacity for your current business requirements, with options to scale up and down as necessary.

This allows financial services to adjust their business according to ever-changing market developments, keeping pace with an increasingly customer-centric industry.

Reduced costs

Financial institutions have traditionally invested in plenty of expensive servers, data centers, software, and training for new staff recruits to maintain and operate them. Such expenses have deterred potential new entrants to the market, preventing competition against the monopoly of large corporations.

Cloud computing conveniently removes the need for investment in the latest tools, equipment, and devices (plenty of which have a limited shelf life), and the expertise to manage them.

Instead, these online platforms provide companies with all the digital services and systems they require. These do not need physical stations or equipment, and plenty carry out maintenance and upgrades themselves, lifting the burden off your team.

Increased business opportunities

Infrastructure-as-a-Service (IaaS) is a form of cloud computing that refers to the delivery of computing resources and infrastructure over the Internet.

It’s become a popular model across industries, with companies using such services as platform testing for new developments and applications. On top of reducing the costs of running such activities on in-house resources, users also get the benefit of the cloud’s high-level computing, storage, and processing capabilities.

Financial services have used IaaS to run credit risk simulations — once lengthy procedures that now take only minutes to complete with the cloud’s efficiency. Others have benefited from its seamless, instantaneous app testing and development.

Greater security

Data protection is the highest priority among financial companies, and plenty of quality cloud service providers offer security systems and protocols in accordance with enterprise standards.

Information is generally backed up on multiple servers across geographical locations, keeping your data safe in case of theft, server crashes, or hardware malfunctions. Many providers also have built-in tools for fending off viruses, spam, and malware to secure communications.

Additionally, users can set strict authentication methods for accessing data in the cloud. With the lack of physical data centers, users never have to worry about physical theft or damage to such resources, and information can be remotely wiped or moved in case of a breach.

"Whether you’re in the finance, trade, or the technology industry, the cloud offers plenty of economic and productivity benefits to advance your business. Get in touch with our experts to upgrade your organization today.


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