10 May

3 Ways Cloud Tech Is Improving the Financial Services Industry

Survey findings from the reportHow Cloud is Being Used in the Financial Sectorfound that 39 to 47 percent of financial service businesses said they plan to use a mix of in-house, IT, private and public clouds in their formative stages. The financial sector is increasingly adopting the cloud or forming a strategy to make a transition. With that being said, here’s a look at how cloud computing can improve the financial sector’s security, ROI and agility:


Improved Security

Data protection is a predominant concern for the financial sector moving to the cloud. Specifically, concern over following relevant laws are financial businesses primary concern, according to a Cloud Security Alliance survey.

Some of their stress can be alleviated by seeking out cloud providers that specialize in security, compliance and risk for the financial industry. For example, Amazon Web Services (AWS) is continuously audited and is certified against more than 20 international and domestic compliance accreditations. Some of its data-sensitive clients include Nasdaq and Capital One.


Boosted ROI

Determining the ROI of adopting the cloud is becoming easier to calculate as more comprehensive and secure solutions emerge. IBM advises business owners to understand their organization’s core strengths and rely on cloud providers to alleviate costs and time burdens. Banks, for instance, are already suffering from a loss of equity and looking to the cloud for solutions to close the gap. According to research by Gartner, by 2016, 60 percent of banks will process their transactions in the cloud due to poor equity.

Moving to the cloud reduces IT costs and gives IT staff more time to innovate and focus on their bottom line. According to research from Harvard Business Review Analytic Services, 74 percent of businesses report that cloud computing gives them a competitive edge. They explain that they have more opportunities that they can act upon more quickly than their competitors thanks to the cloud.


Better Agility

Just behind security and legal compliance, agility is another motivating factor for financial businesses to adopt the cloud. Industry disrupters like Apple Pay eagerly embrace the cloud as a means to stay agile, make enhancements to their product and give their customers the type of service they demand. Agility also allows for rapid prototyping and release of new products to market while the competition lags behind. 

Using the cloud doesn’t necessarily mean an all or nothing approach. Financial businesses often choose a hybrid cloud solution to offer a mix of private and public cloud systems. Such practices provide peace of mind over staying in control over sensitive data, while giving them the agility and flexibility they need to grow.

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