Most banking websites having a presence online today are highlighting headlines with the words imperative,” “transforming,” or “impactful” alongside the word “cloud.” The recent coronavirus pandemic has forced the banking sector & fintech into a cloud imperative.

The scalability, flexibility, resilience, and accessibility of the cloud have been in sync at a higher level, with the banking industry.

Promoting up in Banking

There are several reasons for cloud automation moving up to the forefront in banking. Cloud offers the most benefits for all users, including financial institutions. Here are five advantages that elevate cloud in banking & fintech industries.

Gain Better Access

People started working from home, as the pandemic broke out, and these included the bank employees. So, the cloud is one of the best technology solutions offered anytime, anywhere access to work for employees while overcoming Challenges with Cloud Technology.

Also, the bank representatives and accounts could reach out to the customers for support with account funding queries or issues. However, this turned out to be more aggressive, after the customers were used to banking digitally through their devices, even before the pandemic.

Boost Resiliency

Operations have the feasibility to scale at a faster pace with no dependency on physical infrastructure and meet market changes or shifts in business needs. In other words, it means financial institutions are less exposed to outages and move towards strengthening resilience.

Decrease TCO

Deduction in the total cost of ownership (TCO) is a great possibility with cloud computing for financial institutions. There’s no need to make infrastructure purchases of software, hardware, and upgrades. Cloud technology enhances the savings of time and money required for maintenance.

Innovation Driven- H3

Banks can reallocate resources with costs and time eliminated for administrating the infrastructure as it takes steps towards driving innovation. This in turn improves operational efficiency and delivers better products and services to customers.

The cloud-solution providers cater to a variety of innovative products-as-a-service (PaaS) to benefit banks in achieving even more cost-efficiency. The other benefits of using the Cloud are deeper business insights, and enhanced customer service.

Reduce Risk- H3

Financial institutions always aim at risk mitigation and reduce redundancy. Security is a top priority with leading cloud providers who’ll be part of their business core. The highest level of protection can be assured with updates, as significant infrastructure investments flow in.  

The cloud has the scalability to scan thousands of transactions per second and also helps with compliance. Know-your-customer/anti-money laundering (KYC /AML) compliance can be a beneficiary in detecting fraud and money laundering.

Cloud Migration Recommendations for Financial Firms

Here are five top tips on how to migrate to the cloud and manage cloud transformation to run seamlessly.

Focus On Customer Experience

Understand the customer’s views by learning the basics. You need to predict, analyze, and deliver the right data via the right channel. This allows processing in real-time and generates personalized content and actions, as applicable.

The creation of contextual and personalized omnichannel experiences needs enablement, as financial service firms deliver through end-to-end artificial intelligence/machine learning (AI/ML) platforms.

Reimagine Business Operations

Businesses are now operating in a different manner as the cloud is making relevant advances to them. Bots and Natural language processing (NLP) included in the cloud space can support customer service.

Optical character recognition (OCR) and Robotic process automation (RPA) help pipeline account closure, accounts payable, and credit card processing. In particular, RPA accelerates report automation while encouraging employees and managers to explore smarter ways.

Launch Digital Business Models

After the setup of solid omnichannel customer experiences, take advantage of digital native capabilities to experiment with new revenue channels. Apply cloud computing as a significant platform to enable revenue opportunities and enhanced capabilities.

Investment decision platforms rely on whether categories such as platform-based businesses or services such and launching new capabilities free of any legacy technology constraints. These also include a strategic partnership engagement or parallel digital banking services.

Focus On The Full Cloud Potential

Establish ideas on how to leverage cloud solutions and support your business priorities. This allows a smooth transformational journey while creating a necessary operating model alongside capability changes that are necessary.

The scope is well understood based on business and technical drivers for moving to the cloud. There are parameters that define the potential such as architecture, performance, operations, cost, risks, security and compliance, migration plans, and business criticality.

Review Your People Strategy

Technology in the cloud is achievable with proper strategies and a number of key factors including organizational structure, how ways of working will change, business model advancement, and evolving goals for talent and cultural mindsets.

Restructure IT alignment with business to support the shift in focus as you deliver business value instead of managing infrastructure. The focus for technology risk management is changing to help ensure resilient, secure, and compliant systems on the public cloud.

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