The relationship between cloud computing and the financial industry benefits both immensely. Firstly, a substantial 60% of banks and financial institutions are using the power of the cloud as a tool to improve their current systems and operating models. That means 60% of financial institutions are investing in some form of cloud strategy. Banking is among one of the top three industries to be spending the most on public cloud services. That being said, public cloud is set to become a dominant infrastructure model in the finance world after 2020. Moreover, this growth in spending is predicted to reach a CAGR of 23% in 2020, over the span of the last 5 years.
Most noteworthy, the majority of asset management CEO’s believe that cloud computing will be strategically important to their organization. Therefore, this is why many financial organizations are comfortable in adopting cloud computing. We’ve compiled a few ways in which cloud computing is having a significant impact on the financial industry. From increasing resilience in security to improving scale, the financial industry can only profit from innovations in the cloud. Curious to learn more? Let’s dive straight in.
When it comes to the financial industry, security is a huge priority. For example, confidential customer data, financial figures, and other classified information needs to be protected. Above all, ensuring that data protection is never compromised is a high priority for any financial institution. That being said, many industries, including financial, are making the move to cloud computing in order to strengthen their security infrastructure. Additionally, traditional IT setups are vulnerable to simple cyber attacks, phishing emails, etc. In order to fight the potential for data breaches, cloud computing gives high resilience through security architecture. There are critical security checks at regular intervals ensuring that all confidential data remains safe.
Flexibility, Scaling And Mobility
Regardless of which sector of the financial industry your business belongs to, be it retail banking, investment banking, insurance, or any other – cloud computing can be elastic enough to provide flexibility, scale and mobility to suit any of them.
Cloud computing can act as a base for several applications, meaning that the financial industry now has access to valuable tools that they otherwise wouldn’t. Banks are able to scale up or down depending on the needs of the business. Certainly, this means that a financial company can quickly scale up during peak season without worrying about investing in hardware in advance. For instance, even smaller banking institutions can increase efficiency while lowering costs through the public cloud’s pay-as-you go options.
In terms of mobility, the power of the cloud provides secure banking for employees that may have to work remotely for a variety of reasons. Similarly, their smartphones, laptops and tablets become valuable tools for real-time monitoring and analysis. This is in addition to the benefit of access to company emails, business applications and CRM tools that are valuable assets to their daily duties.
Finally, the role of cloud computing in the financial industry is only going to grow in the upcoming years. Thinking about implementing a private cloud strategy in your business? Trust the experts at VEXXHOST to guide you through every step of the way. We have been using and contributing to OpenStack since 2011 and are OpenStack certified. Contact us today to learn more about how we can help get your cloud off the ground.