2022 is all about businesses embracing digitization in full swing, and rightly so.
One of the most powerful ways to achieve digitization these days is by adopting the cloud. Banks, just like any other industry, have realized this and are gradually tip-toeing towards their cloud-based future. Despite the sudden rush toward cloud-based services, banks are not 100% confident to migrate their operations to the cloud fully. Why?
Because compliance regulations, data security, and outsourcing of critical procedures pose key challenges for banks when deciding to go for cloud-based services. While some loopholes remain, banks are more interested in business agility, improved efficiency and the unparalleled cost advantage cloud services offer.
This blog deciphers the role of cloud in banking and how it sets the precedent for modern-day banking procedures that are more personal to your customer.
What is cloud banking?
Simply put, cloud banking corresponds to the implementation of a banking infrastructure built on the cloud. This means your core banking operations including cross-bank collaborations and accessing various banking facilities can now be performed in real-time, anywhere and at any time without the need for on-premise dedicated servers.
How are CSPs helping banks?
In cloud computing, we use CSPs to refer to Cloud Service Providers. Popular CSPs include Microsoft, Google, Amazon, and Oracle which offer, maintain and manage cloud infrastructure for various customers. These big cloud providers offer an array of product-as-a-service innovations that help banks instantly access critical information, optimize cost control, and maximize revenue generation in the long run.
After years of garnering faster, cheaper, and scalable outcomes from digital technology, banks and financial institutions are shifting focus on better alternatives on on-premise data storage options; offered none better than by cloud service providers. Here are 6 perks of adopting cloud for banking practices:
- Accelerated technology innovation
- Foolproof security for sensitive data
- Synchronized and integrated business units
- Resilient and cross-connected operations
- As-required scalability for computing costs
Crafting an enterprise-level solution
Business and IT experts using on-premise banking solutions for a long time might find cloud migration a challenging task at hand. The good news is you can decide to adopt this cloud transformation as an incremental process.
Many banks and financial organizations are following a hybrid approach to cloud adoption which allows them to mix and match multi-cloud services as per their business needs and cloud readiness.
Whichever model you use, data stored on the cloud is many-folds secure, approachable and scalable when compared to the traditional on-premise banking systems. Working with cloud-powered solutions helps you customize your deployment model, design, and execution the way you like.
Deciding where to go next
When you look at the future of cloud banking, it is safe to say that it seems quite promising. Properly examining your compliance requirements and challenges plays a key role in deciding the nature of cloud solution you are opting for your bank.
Deciding on a banking infrastructure that meets your necessary business requirements while offering your business agility and scalability is important. Cloud experts at Systems Arabia carefully assess your business requirements to offer you the finest cloud solutions tailored to your bank’s requirements.