The cloud is this new dimension where many wonderful things happen, and banks can explore the most exciting opportunities. And it is time for a change! The financial industry is missing out on many if the leaders are not brave enough to adopt the cloud into their strategies. To name a few: scaling up or down when needed, access to unlimited flexibility, improved security, and providing the latest innovative technologies to users.

Recognizing the need for cloud computing 

This is the first step. Before everything, the conversation about optimization and expansion of core banking functionalities needs to take place where the thought about cloud migration typically seems to make the most logical next step. More and more IT leaders, C-suite executives, and board members in the banking industry are already contemplating this process. But can the cloud live up to its promises? Let’s find out together!

Leverage the cloud for untapped business potential

What the vast majority of companies want are happy customers. And what customers need is flexibility, a fast and seamless experience, and 24/7 access to their wallets.

Many financial organizations still struggle to ensure the best experience and lack the capabilities to match customers’ high expectations with current offerings. We agree that some concerns may interfere with security, compliance, and cost. However, it is possible to address them even if the banks feel that overall cloud migration is mission impossible. We can efficiently address these concerns. Collaboration with an established cloud provider helps financial organizations to find the best deployment model for cloud migration. The assessment and analysis are done with the banks’ internal IT teams. As a result, they evaluate the cost of such migration and embrace its advantages.

Some of the most significant benefits are: 

Flexibility

The enormous amounts of data created daily by banks and financial institutions need to be processed, stored (in a few different locations), analyzed, accessed, maintained, and drawn conclusions from. The positive that the cloud brings in all these casualties with silos of data is the fast and easy access to data, its AI-driven analysis, automotive risk mitigations, deep learning analysis, and fully compliant regulatory reporting.

Scalability

When the business needs change, so has the IT infrastructure. In synchronized accordance with demand, the cloud will respond to any change in a split second. The quick and easy fixes of cloud needs are possible without worrying about going through the extensive process of building new servers, storage rooms, etc.

Cost efficiency

Massive saving costs lie here as new servers, storage capacity, processing power, maintenance costs, IT staffing needs, and more are running in the background, supporting organizations day-to-day. An integral part of doing business is optimizing costs to suit planned activities as best as possible. Saved costs on unutilized hardware, software, and maintenance services increase in the long run. This is why there is no need to build and maintain their data centers when banks can instead use the pay-as-you-go pricing models of cloud providers.

Security

Heavy investments in security are expected from all finance companies. Although there is a misconception that the cloud is not secure enough. Even public cloud providers have enhanced security than most on-premises systems. The cloud environment offers multi-layered protection against any cyber-attacks and data breaches.

Compliance

Robust regulatory compliance programs must be set in place and constantly working in favor of banking and financial companies. Luckily, cloud providers can quickly help banks meet every requirement, as they also adhere to these same regulations. Compliant infrastructure and services, as well as audit trails and monitoring tools, are used for reaching the heist Standards, such as GDPR, PCI-DSS, or HIPAA.

Innovation

The wide world of possibilities can be unlocked by cloud adoption. Tech advancements such as conversational chatbots, more secure payment authorization via blockchain, and more will significantly impact end customers. Every bank can accelerate its operations with the latest innovative tech on the market if they move to the cloud first.

The opportunities grow exponentially as soon as banks migrate to the cloud. As soon as they realize the untapped potential in their mountains of data and all the possible ways it can be used – cloud computing will become a no-brainer. Soon after, customers will have hyper-personalized and more native experiences, leading to higher satisfaction rates and user retention.

The Sky is not the limit

And change in this turbulent world is inevitable. So, brace yourself and take a look around. New fintech start-ups are no longer small disruptors in the banking ecosystem; they have gained a competitive edge by leveraging feature-ready technologies such as cloud, ML, AI, etc. On-premise servers are things reserved for the past. Let’s look forward to the near future when even more significant amounts of data and processing powers will overload banks. The only logical solution is to adapt early by migrating to the cloud.

Private, hybrid, or public cloud – whatever suits the needs of banks best would be a better alternative. The enormous opportunity for improving competitive position and growth is the cloud. The flexibility, innovation, and agility level would never be reached with on-premise. On top of that, cloud models enable the much-needed digital transformation in the banking sector, which is important for a competitive edge.