The finance industry deals with large volumes of extremely sensitive data, so it’s vital for organizations to be confident in their data storage solution.
Now more than ever, financial institutions must leverage a strong cloud infrastructure to tighten their data security, optimize operations, deliver improved customer experiences, and reduce costs.
What is cloud computing?
Cloud computing is the on-demand delivery of different computing services over the internet, including databases, software, servers, and analytics. Instead of maintaining physical data centers and servers, you access storage & computing power as needed from a cloud provider.
6 Benefits of Cloud Computing in Banking & Financial Services
Financial institutions can realize impactful benefits from adopting cloud computing, including fraud detection, reduced costs, tightened security, compliance with regulations, better customer relationship management and greater scalability.
Learn more about the benefits of cloud computing in financial services:
- Fraud detection
- Reduced costs
- Tightened security
- Compliance with regulations
- Customer relationship management (CRM)
- Greater scalability
Cloud computing improves fraud detection
Fraud in the financial industry can include identify theft, applying for a loan under a false name, direct theft of funds, creating a fake bank account, money laundering, attempted tax evasion, and speculatory trading.
Banks and other financial institutions leverage the cloud for fraud detection by analyzing massive amounts of data from diverse sources. This helps them detect potentially suspicious or dangerous activity and address it before it causes damage.
Cloud computing reduces costs for financial services
Cloud computing enables financial institutions to reduce their data storage costs with a pay-as-you-go pricing model, as opposed to paying significant upfront costs to deploy and maintain large on-premise systems.
Cloud providers manage the administration and maintenance of data storage services, reducing your organization’s equipment and IT infrastructure costs as well as your IT staffing needs.
Could computing tightens security
Banks have a legal responsibility to keep the extremely sensitive customer data they house safe. On-site electronic data storage can be leveraged but requires a staff of IT professionals with deep expertise in data security to keep customer information protected.
Cloud providers follow strict requirements for data privacy and security, ensuring your data storage method keeps your customers’ data secure and providing multiple layers of protection against cyber-attacks and data breaches.
Cloud Computing improves compliance with regulations
Because the financial industry deals with such sensitive customer data, there are a number of data, security, and privacy laws to consider.
Because cloud storage providers follow strict requirements for data privacy and security, it can give you peace of mind that your financial institution is compliant with industry regulations.
Cloud computing improves customer relationship management (CRM)
Banks can use cloud-based CRM systems to store and manage their customer data and interactions in a consolidated, central location.
Today, 73% of customers expect the companies they interact with to understand their unique needs, desires, and expectations. The right cloud strategies can enable banks to provide the kind of personalized services and offerings that your customers need and expect.
Cloud computing leads to greater scalability for financial services
Previously, organizations had to purchase infrastructure and resources for “peak load.” Now, however, cloud services are scalable, meaning banks and other financial institutions have the flexibility they need to scale up and down as needed.
If your financial institution sees spikes at different times of year, you can increase and decrease your computing capacity automatically as demand fluctuates. That optimizes your operations and prevents over-allocation of resources.
How Can AIM Consulting Take Your Cloud to the Next Level?
Our experts at AIM Consulting can help you navigate the investments you should be making in cloud technologies, migrate to cloud platforms, plan for business continuity and disaster recovery, and leverage cloud-based automation tools like AWS Pipeline for CI/CD.
Our flexible engagement model allows us to deliver from strategy to implementation to maintenance in ways that make the most sense for you and your business.
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