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Importance of Cloud Computing in Banking Industry

Importance of Cloud Computing in Banking Industry

There is no denial that cloud computing has emerged as a convincing trend in today’s business sector. And it is betting big with the list of benefits that it offers and is on the verge to bring drastic changes on how technology gets implemented in every operation and gets used by the end user in an organization. Just like it is bringing a lot of positive changes in most of the business sectors, the financial sector is also experiencing the many benefits of cloud computing. It helps to create a more flexible business model to successfully deliver effective solutions to the growing business dynamics and competitive market.

Cloud computing provides a broad range of specifications that banks require on a flexible basis.
It helps the bank to transform the entire business processes and thereby increases the ability to grow in new sectors without the involvement of the cost burden. It creates new markets to distinguish from the competitors and improvise on the modes or mediums through which the customers use the services of banks. This way banks would be able to provide consistent service to customers across branches and closely understand the information irrespective of the location they reside.

Advantages of the cloud computing:
1. Cost effective: The banks can cut down on the dedicated hardware, software, and related manpower. It is easier to update the IT infrastructure through a pay-on-demand model of cloud computing. This way they need to invest only on the hardware and software.
2. Enhanced flexibility and scalability: The banks can respond quickly to the changing market, customers’ demand, and technological advancement. Cloud helps to keep up with the variations according to the requirements. The quick response is going to prove very important and give a competitive edge in the banking industry.
3. Higher efficiency: The efficiency ratio gets better with the standardization that could bring. It helps to integrate new technologies and applications through integrated business operations. This way the banks can get rid of unnecessary complexities.
4. Swift service: It helps the banking system to ensure that the programs and services get easily developed and launched. It eliminates procurement delays related to hardware and software. Cloud power will help to meet the rising customer demand and provide the latest treasury solutions.
5. Stronger customer relationship: The power-packed combination of cloud computing and big data will allow banks to develop capable systems to provide better insight to the customers. Services will get more customized. Buyers and sellers would be on the same platform brought together by cloud applications.

Banks have started to consider inclusion of external clouds in the operation. With the major concern areas as security and control, banks can apply cloud computing to non-core operations.
This business model transformation of cloud computing can prove to a wining mantra and help grow the business level.