Cloud Computing in Banking: Benefits and Use Cases

Before jumping into the challenges and governance models, any organization should be aware of the cloud’s merits. As a whole, cloud computing in finance can revolutionize the fintech industry in several ways, the most important of which are:

• Renewed data security. As the on-premise solutions require mundane tasks for data security compliance, migrating to the cloud seems a viable option. In particular, cloud computing for banks stands out because it’s a security-first approach. With the cloud, it’s possible to meet the compliance criteria and ensure the required performance level in the long run.
• Cost optimization. Unlike on-premise solutions, the cloud’s main pillar is usage-based billing. Using the latest data governance techniques, enterprises can make the most of cloud computing. Instead of paying huge bills upfront, the organization has to manage bearable operational costs that come alongside adoption. With less initial investment, it’s more obvious that cloud computing in banking and financial services will be highly popularized over the next few years.
• Operational effectiveness. One of the most overlooked features that makes cloud computing in banking so efficient is the boost to operational capacity. Since cloud migration involves automation of mundane workloads and applying CI/CD practices, hosting infrastructure in a serverless environment stands out as a huge advantage. And let’s not forget that cloud-embedded risk management and loss prevention tools are crucial for any enterprise.
• Business continuity. With cloud computing, a bank, or a financial organization, the chosen provider model is responsible for managing the allocated data and infrastructure. This way, companies gain a competitive edge in data protection and failure prevention. On top of that, cloud computing has a solid redundancy level, which outperforms any on-premise approaches.
• Innovation-driven design. From the environmental perspective, cloud computing is one of the principles of green IT. Moving data-heavy infrastructure helps reduce carbon footprint, which is one of the concerns of large-size enterprises. Regarding computing power, cloud solutions decrease idle times and aim at the most efficient resource use.

These benefits of cloud computing in banking are apparent, and more financial organizations should look forward in this direction. Yet, let’s also consider some of the noticeable challenges all organizations face when making their minds on the cloud migration decision.