Cloud computing is continuing to revolutionize the way companies do business. Over the past six years or so, cloud computing has quickly gained momentum and is becoming widely adopted across multiple industries. One industry where the adoption of cloud computing has been rather slow is the financial services industry. Financial firms, banks, and other institutions specializing in currency and commerce have been hesitant of moving operations (or even partial operations) to the cloud.
Here are 3 ways that the cloud can benefit companies within the financial services industry.
Ultra-Low Cost Storage
Financial organizations need to hold onto volumes of data. While individuals need to hold onto tax and financial information for at least 7 years in case of an audit, financial companies have to follow industry regulations that dictate what types of data these companies need to hold on to and for how long. Storing years of financial information can take up a lot of space on internal servers. If a company runs low on server space, they then have to pay for additional storage units as well as wait for the equipment to come in and get deployed by an IT staff member.
The cloud provides easily scalable storage that can be increased or decreased in a matter of seconds through a cloud dashboard. In addition to its scalability, many cloud providers offer storage solutions for a fraction of the cost of purchasing, operating, and maintaining internal storage servers.
The Power of Infrastructure As A Service (IAAS)
The cloud provides Infrastructure as a Service (IAAS) which reduces costs on deploying, testing, and running applications on in-house resources. In addition to giving businesses a testing platform for new applications and projects, the cloud offers super high-level computing and processing capabilities. For example, many financial services companies use AWS to run credit risk simulations. With the power of the cloud, this once lengthy process that used to take hours to complete can now be executed in roughly 20 minutes. This means financial firms can make decisions fasters, and streamline their operations which can in-turn have a positive influence on profitability.
Scalable Computing for Ever Changing Databases
Financial institutions need to organize thousands if not millions of contacts. Customers, clients, investors, and vendors all need to be neatly organized and stored within a CRM or other central database. Cloud providers such as Microsoft Azure or Amazon Web Services offer database options to allow businesses to launch and manage their CRM or other database data in the cloud. By hosting databases in the cloud, it frees up space on internal servers which can store other information (especially data that a company isn’t comfortable about moving to the cloud).
Although the cloud has been slow to catch on in the financial sector, more and more banks and financial institutions are realize the power, efficiency, and cost-effectiveness the cloud provides.