Cloud Computing to Create a More Robust Infrastructure for Financial Services: The Inevitable Future


Cloud Adoption is peaking across all industries. That’s because the businesses that want to stay agile, innovative, and cost-effective are bound to use the cloud to revolutionize. This is exactly the case with the financial services industry.
cloud computing for financial services

Over the years, financial institutions have grown with the use of SaaS for most of their non-core applications. But now, it is time that cloud computing fit right in place to create a more robust infrastructure for all financial services. The reason to justify this approach includes the fact that most of us use banking applications and other online payment gateways to make everyday payments. Another reason is that consumers have trusted the online methods and they now wish to achieve a lot more from online services.

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As for incumbent banks, they need to upgrade their core systems and integrate the latest technologies on a high priority because COVID-19 has definitely provided them the push. With that being said, the number of online financial transactions is also rising. This makes financial institutions more aware of their need to spearhead digital transformation initiatives in order to ensure that any issues like technical glitches, power outages in data centers, and mobile application crashes should not occur regularly. And even if they do, they must be resolved in real-time.

Did you Know? Analysts predicted that public cloud spending will grow from $229 billion in 2019 to nearly $500 billion in 2023, out of which 1/3rd will be accounted for by three industries – professional services, discrete manufacturing, and banking.

Today, the cloud must be used to address all sorts of regulatory changes, fresh demands from consumers, the deployment of emerging technologies, and the relentless competition from agile FinTechs. Financial service providers will need to reset their priorities and will have to go beyond leveraging the cloud for just scalability and cost-efficiency. Their focus must shift towards robust digital transformation, technology platforms, enhancing IT security, driving innovation, enterprise synchronization, and stepping out of legacy systems.

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So, without further ado, let’s talk about the changes that the financial industry must focus on to create a robust infrastructure for their services.

Security and Compliance
Cloud Security has been a concern for many organizations despite the fact that the cloud has become more secure over the years. However, to cover the aspect of security and compliance, the financial service industry can focus on the following pointers:
• Regulatory Compliance – Meeting requirements of regulatory bodies is crucial. It ensures security and compliance right from architecting to implementation and ongoing compliance.
• Secure Cloud Architecture – Building architecture with a goal to be secure is essential.
• Vigorous IAM Policies – Using tools and services to provide a stable IAM layer on top of your enterprise app is a must. This provides you seamless access via robust access control policies to a host of applications that a typical financial services institution uses.

Agility in Thought and Action
As we move towards using the cloud, we must be prepared to shift more infrastructure resources and understand that workforce will all be developers. For any new development, we’re going to be using the cloud. For on-prem, we’ll be looking for alternate solutions on the cloud. For legacy systems where there is not much of an option, we’ll look at building an API service layer on top of the legacy apps. It’s the agility in thought and action that needs to be the key focus. It’s time to embrace the “Fail Fast-Fail Safe” approach but remember, agility should not be restricted to being a technology function but should be implemented across the organization.

Partnerships
Selecting the ideal cloud provider is the most important part of building a trustworthy service. This is why most organizations tend to pick multi-cloud strategies driven by several parameters such as their IT strategy, partner landscape, legacy applications, and vendor enterprise software solutions. You must choose cloud partners who have the wealth of experience and a skilled workforce to help you migrate to the cloud because such providers have the tools & services to get you on the cloud in a fast, economical, and efficient manner.

Conclusion: Cloud transformation is one of the three big pillars of digital transformation. Embracing digital, adding value to customers and shareholders, and complying with regulatory framework is only possible when you implement a solid cloud transformation program. To build a robust system, you need agility in your thought & action and you need strong partnerships and security to make your case.

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