How cloud computing has electrified the financial industry

Oct 8, 2019 9:38:56 AM

It’s no secret that the finance sector has traditionally shied away from the stellar rise of cloud computing - this despite the positive impact its technology has had on banking and insurance generally.

But where has cloud technology had the biggest impact? And should the finance industry be more willing to embrace this growing trend.

Security

Top of the priority list for any financial institution will be security, which is why it’s at the very top of our list too. With cloud computing being relatively in its infancy, it’s no surprise that its adoption has come with some apprehension. However, many businesses have moved to the cloud not only because it’s becoming the ‘new normal’, but because it actually strengthens their security infrastructure.

Data breaches and cyber attacks have been on the rise globally, whatever industry you are in, meaning no IT environment can be truly safe from hackers. With a traditional setup, something as simple as a phishing email attack has the potential to bring down a whole network.

Cloud computing offers a resilient security architecture and is regularly stress tested to ensure it is up to date and performing effectively.

Cost

Cost saving may not be quite so important to financial services as other sectors, but it’s certainly worth noting that a cloud technology package will cost less since it doesn’t rely on expensive servers and data centres being part of your core IT infrastructure. The cost of ownership and maintenance is also removed.

Big Data

Storage is one of the big benefits that come with moving to the cloud. Huge amounts of data are generated on a daily basis in the finance industry due to stock market transactions, card transactions, loans and insurance payments. With a traditional IT setup, constant upgrades and maintenance were the norm, whereas cloud computing gives a business unlimited storage without the worry of increasing the amount of data.

Scalability

Cloud computing allows a business to scale resources easily and quickly in the event that business needs to react to events such as major changes in government policy.

Compliance

Good cloud providers always ensure their products meet the fundamental compliance needs of a sector before selling to it.

Cloud vendors take very stringent measures to make sure that in joining with and offering services to finance industries, no compliances are violated by either party. Compliance bodies work with some of the major cloud vendors for monitoring purposes. However, financial institutions should make it a point to discuss minute details before signing up with any vendor.

Mobility

Cloud computing has transformed people’s work patterns, with workers no longer chained to a desk and phone. Instead, the technology allows their personal smartphones and tablets to monitor and analyse data, as well as access company emails, software and CRM tools when they are out of the office, at any time, anywhere in the world.

Summary

Cloud technology has taken the world of finance by storm, with many taking on the regulatory challenges of transitioning away from tradition for the better. For more insight into how asset managers can step up their game in the new Fintech world, check out our latest guide.

The key to delivering value in the tech age

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