There is no doubt that in the age of the Internet, big data and the cloud computing revolution has taken hold in recent years and enabled industries around the globe to improve their capacity to access and mine data from all sort of sources. As businesses are steeped in data, most sectors are looking for innovative digital solutions that can help them analyze large volumes of data, while improving customer experience and staying ahead of their competition.
Cloud is proving to be a great way to increase data handling capabilities; which we will discuss further in this article. For use cases such as data analysis, volume processing, and data storage, banks can access cloud at any time; which means they can use such resources more flexibly and efficiently. Cloud computing enables financial institutions to achieve significant profitability in terms of efficiency and cost savings; as technology banks must pay only for the services they use.
Forby, automated integrations enhanced the speed and security of transactions for banks. Cloud computing architectures for banks are usually designed to provide multiple layers of protection that can detect fraudulent transactions in real-time without compromising the user’s experience in the application.
The financial industry has not shunned the popularity of cloud computing. The most prominent financial institutions have seen how cloud technology has positively impacted some of its sectors, such as insurance and banking. They may not shout from the roof, but they do agree that the cloud event has made their operations more relaxed and efficient.
Skyhigh Networks surveyed to find out how comfortable financial institutions are using cloud technology. According to the results of their survey, an average financial services company employs more than 1,000 cloud services.
The report of the survey was based on data collected from 3.7 million employees at banks, insurance companies, and credit card companies, and other financial institutions.
How does Cloud computing benefit Fintech?
In the Brobdingnagian (meaning “gigantic”) world of Fintech, most consumers have gone digital. The people we see standing in the queues to withdraw cash from bank are those who need money beyond their prescribed ATM limit.
Statista forecasted worldwide e-commerce sales are expected to reach $2.48 trillion, and this transaction will be done online.
The numbers mentioned above also raise some concerns which can’t be excused. So let’s find out how cloud computing gives us a breath of relief.
First and foremost, Security
In the world of Digitalization, Security has become the prime focus, especially in the banking sector. Due to the increase in the number of data breaches and cyberattacks, and makes it challenging to have a foolproof IT environment safe from hackers.
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We know what the reasons are – as we are dealing with a large sum of amount and very personal and sensitive data of the customer.
Cloud computing provides highly secured architecture and keeps on going through stringent security checks at regular intervals; even almost every cloud provider guarantees a 99.9999% security level.
Yes, you are thinking right, relying on cloud providers means to cut down the cost of expensive servers and data centers as well are other infrastructure; which takes up space, time and ownership cost and also a specialized executive for maintenance and management. With cloud computing, you pay what you used as per your demand and removes the hesitation of expansion. Forby that you will be provided a specialized expert by the cloud provider to handle your cloud Infrastructure.
Cloud computing solutions will enable banks to create innovative and agile products with high security and clock availability. When data is secure, banks can develop tools and user experience that will greatly improve operations and user experience, at any time, anywhere, without the time constraints imposed by traditional infrastructure without customers and employees.
Last but not Least, Compliance
Cloud compliance is a general principle that cloud hosting providers must comply with the standards that cloud customers face. This is the most critical issue in new cloud computing services and one that many IT professionals look closely at. Cloud providers are very strict about following the compliances and make sure no compliance is violated by either of the parties, that in joining with and offering services.
As we have seen above how cloud computing plays a very important role in the Financial sector and even made it possible for Fintech to keep pace with Digital transformation, without Cloud Computing it has been almost impossible for FinTech to reach where it is right now.
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