how bright is the future of banks in clouds?
When it comes to data security, banks and financial institutions cannot afford to have their head in the clouds. Their data on the other hand just might be the safest precisely there - in the cloud. Here are the main benefits.
THE BENEFITS OF THE CLOUDS
So what are the benefits of the cloud? Well, the cloud can be a much safer and secure environment for a bank's operation than its on-premise data center and also it can be much more efficient for the budget. Explained in more detail, here are all of the perks:
WHAT CLOUDS TO BANKS LIKE?
Already banks are enlisting the expertise and services of Microsoft, Amazon and the like and steadily moving their operations and data to the cloud, both streamlining their operations and cutting costs. Per Ovum's market research for 2018/19 64% of banks globally report their intention to employ cloud-based systems, which is an increase of 20% from 2017. Some big banks have recently even begun employing private clouds - internet-based data systems they had developed to suit their specific needs and purposes.
Others are making use of Amazon Web Service. Singapore's DBS was among the first, with the likes of Spain's Bankinter and UK's Starling, Monzo and OakNorth following suit.
TO MIGRATE OR NOT TO MIGRATE?
Migration to cloud-based
data systems does however require banks and fintechs to work on educating their
current and potential customers on not only the benefits of the cloud but also
what it actually is: the computer age has already made money less tangible than
it once had been.
Moreover, online transactions have been gaining on both cards and cash, and bank branches have been steadily dwindling in numbers. With cloud-based computing and data storage, the handling of money becomes even more abstract to the average person - but it doesn't take much to show them just how and why the cloud is so irresistible.
In the US, Healthcare.gov
has recently shifted its production to Amazon Web Service. The cloud now
handles 11 million annual subscribers and up to 300000 concurrent users who
create up to 8000 transactions per second and access 7 billion documents.
This is a large-scale operation and also a critical one and the fact it was given to a cloud system - and remained there - speaks of cloud's efficiency and reliability.
It's still the early days, so banks and fintechs might find it savvy to begin searching for potential cloud providers and make a strategy for taking advantage of cloud's opportunities.