The nature of banking technology is transforming and evolving on a daily basis. As such, it is likely that IT professionals within financial institutions have begun to push for businesses to utilize and migrate to the cloud. However, both total and partial cloud migrations are not without their challenges, leading many financial professionals to wonder whether the change is absolutely necessary.
The reality is that the cloud provides immense benefits to banking and financial businesses that can not easily be replicated through other strategies or onsite technology. Not only can the use of cloud services greatly improve the efficiency and cost effectiveness of an IT department, but it can also provide major improvements to all aspects of a business.
In this article, we will discuss why moving to the cloud is one of the smartest moves you can currently make for your business. We will explore the various benefits of using the cloud including improved speed of delivery, lower operational costs, and greater scalability. Plus, we will cover how moving to the cloud can help you to stay ahead of the competition and drastically improve your customer retention.
The Cloud Provides Improved Speed of Delivery
One of the greatest benefits of the cloud is its ability to provide businesses with significantly improved speed of delivery. In fact, improved speed of delivery can ultimately lead to a much larger market share, thanks to users becoming more attracted to your business.
When we talk about speed of delivery in terms of banking or other financial institutions, we are referring to the quickness and ease of use of software being utilized to relay information or services. Speedy delivery is essential for keeping information readily available and maintaining a strong relationship with your customer base or clientele.
Improving your business’ overall speed of delivery can also help with:
- Seizing new opportunities as they arise in the market
- Protecting existing revenue streams
- Responding and adapting quickly to changing business environments
By utilizing the cloud, financial institutions can greatly streamline many of the more complex processes that otherwise may negatively affect software delivery speed. The cloud helps to keep necessary data much more organized and well-coordinated as well.
Lower Your Operational Costs and Improve Scalability
When considering a migration to the cloud, changes to overall operational costs is a major consideration to keep in mind. In truth, there is the potential for costs to increase initially when a cloud migration plan is first adopted. However, with the correct optimization of your cloud migration and utilization of managed services that help to streamline the processes and cut down on the amount of onsite technology or staff needed, the cloud can greatly improve cost effectiveness once employed.
This flexibility that we provide is possibly one of the greatest assets provided by the cloud. It allows for financial institutions to have much greater scalability, allowing them to adjust costs and spending according to current market needs and consumer demands.
Utilizing the cloud to improve your scalability means that your business can more easily adjust its operations in order to meet the needs of all customers or clients during the busiest hours of the day or week. This, in turn, enhances the customer experience while also maintaining a strong level of security within the operating systems.
Moreover, the use of the cloud can help ease the process of keeping your systems updated regularly without the need for large quantities of onsite software or technology. The remote nature of how the cloud operates also provides a tremendous opportunity for businesses to cut down on staffing and office-related operational costs, as employees can work remotely thanks to being able to securely access the necessary information to carry out their jobs from anywhere at any time.
Improve Your Performance to Stand Out Among Competition
When it comes to cloud migration, the fact of the matter is that your biggest competitors are likely already looking into it or actively utilizing the cloud. For financial institutions not yet up to speed with these kinds of changing technologies, this can spell disaster if they are unwilling or unprepared to adapt.
According to a survey from the IBM Institute of Business Value, banks that are outperforming their competitors are 88 percent more likely to utilize the cloud or a hybrid version of the cloud. Another study by IBM found that 66 percent of global banking executives reported traditional value chains being replaced, and a further 61 percent stated competition is now coming from new and unexpected areas – including cloud computing.
Put simply, if you want to stay ahead of your competition, using the cloud will need to be an essential component of your business strategy moving forward. The speediness and opportunity for innovation that is offered through cloud services also allows your business to focus less on day-to-day operations and instead re-focus on how to get your business well-known and high ranking within the market.
Increase Overall Customer Retention
We’ve mentioned a few times now how utilizing the cloud can improve the experience of your customer base or clientele. When it comes down to it, the cloud helps you to focus more on your customers and their satisfaction, which is majorly important for improving your overall customer retention.
While generating new leads and bringing in new customers is certainly important, it is arguably more important to improve your attentiveness towards your business’ existing clientele. The Harvard Business Review reports that increasing customer retention rates by just 5 percent can result in an increase of profits by anywhere between 25 to 95 percent.
Furthermore, thanks to many of the biggest banking institutions adopting the cloud, customers are growing more accustomed to these evolving technologies and may even experience higher trust levels towards businesses that have effectively embraced the innovative powers of cloud computing.
The cloud ultimately helps banks to shift their business model towards a more customer-centric strategy that leads to greater customer loyalty. Customer retention is truly the key to maintaining your business’ sustainability and success.
Final Thoughts: Get Started with Your Cloud Migration Today
The world of banking is changing, and it is crucial for your business to adapt to these changes in order to stay ahead of the competition and maintain a high level of rapport with your customers.
Cloud migration can seem a bit complex to those unfamiliar with cloud computing – but it doesn’t have to be. Finding the right cloud computing provider, as well as utilizing managed services offered by said provider, is one of the fastest and easiest ways to get started with your cloud migration immediately.
Here at CPQi, we offer all the necessary services your financial institution needs to get up to date on the latest cloud technologies and strategies as soon as possible. Not only are our experts trained professionals in the world of technology, but they are also experts in the field of finance as well. This means your cloud migration can be specifically tailored to meet your professional financial needs as well. Plus, we have a proven track record of working with the top banks across the Americas.
Written by Paul Morris, North America Sales Manager. Schedule a call and book your free consultation with him today to learn more about our cloud migration and managed services.
