The cloud and cloud computing have become staples of digital transformation – but not every financial institution has embraced the many advantages of using the cloud.
When your financial institution opts out of using cloud-based services and platforms, there are many crucial benefits that are lost in the process. From improved speed of delivery and scalability to lowering operational costs and gaining a competitive edge, the cloud is essential for finding success moving forward.
Technological advancements show no sign of slowing down. For the financial industry, this means the time is here to embrace digital solutions – starting with migrating to the cloud. In this article, we will discuss exactly what your financial institution is missing out on by not being on the cloud.
Improved Speed of Delivery
When providing financial services digitally, there are many essential software programs and products that need to be continuously developed and delivered.
The cloud offers a tremendous advantage in this regard, as it enables automation of software delivery processes. This allows for more time to be spent on development of updates and new products, rather than having to focus all of an organization’s time and energy on ensuring current software is operating smoothly.
By improving your speed of delivery, the cloud can also enable a number of other advantages as well, such as:
- Boosting your institution’s ability to adapt to changing market demands
- Providing protection and security for existing revenue streams
- Freeing up more of your team’s time to be spent focusing on customer needs and expectations
Greater Scalability
With traditional IT operations, servers, and digital infrastructures, scaling an organization up or down according to current market demands can be very costly and difficult to achieve.
Comparatively, the cloud is designed for a wide range of scalability. Through automation of essential processes, the cloud can quickly scale your operations according to market fluctuations. This means that your financial institution’s operations can be adjusted on a day-to-day basis as the expectations and needs of your clients ebb and flow.
Not only can the cloud scale automatically, but it can scale on demand as well. As a result, your financial institution can react and adapt to budgetary or funding changes with much greater efficiency.
Lowered Operational Costs
Storing all of the crucial financial data and information of both your clients and your institution comes at a cost. When you choose to use on- or off-site physical databases, this can result in costly energy expenditures.
Physical servers and databases can drastically run-up operational costs due to high energy expenditures and costly maintenance. With the cloud, however, this cost can be cut down significantly. This is achieved due to the fact that cloud utilizes virtual servers and databases that are much less expensive to operate.
Additionally, the cloud uses a centralized system that can be accessed by anyone at any time. This means that your employees can communicate and collaborate with much greater ease, all while working remotely. Not only does this result in greater support for your professional team, but it can also cut costs associated with physical office spaces, as the cloud enables remote working environments.
Greater Competitive Edge
Digital transformation is taking the financial industry by storm – and it’s only a matter of time before your competitors begin to take notice.
By embracing the cloud now, your financial institution will be poised to have a much greater competitive edge. The cloud is essential not only for demonstrating your institution’s technological prowess to customers, but also for outperforming your competitors on a larger scale.
Boosted Customer Satisfaction
These days, financial institutions are witnessing a major shift in customer expectations. As digital financial services become more widespread, your clients are likely to expect your own institution to adapt to meet their digital needs.
Migrating to the cloud and utilizing cloud-based services is crucial for both onboarding new customers and retaining existing ones. Plus, the cloud often goes hand-in-hand with DevOps strategies and Agile methodologies, both of which place the focus on customer-centric business models.
As the world becomes more and more digitized, connecting with your customers in this way is more important than ever.
Final Thoughts
Cloud computing is powerful technology – and it is one of the foundations of the future of digital banking. There are many ways to leverage the cloud, including AWS or Azure for banking.
By not embracing the cloud, your financial institution may end up falling behind the competition, resulting in a degradation of customer satisfaction. If you want to stay competitive and give your organization the tools it needs to succeed moving forward, the cloud is the path to choose.
For more information on the cloud and cloud migrations, contact CPQi today.
