How Innovation in Cloud Technology Is Transforming the Banking Industry
Cloud computing is becoming more popular as a result of the need for speedier solutions such as Oracle Flexcube and greater agility. Using cloud storage has been more popular in recent years, and its popularity is only expected to continue to expand. Businesses across a wide range of industries are making the journey from legacy systems to the cloud in order to migrate to a more resilient business model.
What Is Cloud Banking?
Many bankers have recognized the promise of cloud computing and see the cloud as a key driver of the industry’s transition to a digitally transformed state. Data storage and retrieval in the cloud are two terms that are used to refer to cloud banking services. Better technology for managing data, the cloud has shown to be particularly beneficial to financial institutions, particularly in terms of offering flexibility, scalability, and security. One of the primary reasons why banks have chosen cloud computing over conventional IT infrastructure is that it allows for faster deployment of financial services while incurring fewer costs in the process of rolling out new applications and more flexibility in adjusting to market demands.
Factors Driving Bankers To Move To Cloud
Banks are always on the lookout for solutions that are both speedier and more agile in their delivery of financial services. What precisely does Oracle Flexcube universal banking do to aid bankers in accomplishing this goal? To better comprehend this, let us first take a step back and consider the major issues that banks are now facing:
Key Challenges Faced By Banks
- Customer acquisition and retention: Obtaining new customers and maintaining customer satisfaction with existing customers, ensuring that your customers seek out and utilize all of the services offered by the bank, and providing them with exceptional service to prevent them from switching to a competitor are all important goals of any bank.
- Deploying services fast to market: In order to keep up with new services and offers that are introduced on a regular basis, as well as to ensure that all of your collateral is up to date, you need a solution that can be implemented quickly and easily in the market.
- Agile innovation: It is necessary for banks to continually reinvent their offers in order to suit the changing needs of their customers, and this necessitates that they be on their feet and constantly reinventing their own businesses. An agile model that can be rapidly rebuilt is required for this.
- Regulatory compliance: Making sure that everyone is up to speed on all regulatory obligations and that everyone is in compliance with the most recent regulations.
- Cybercrime prevention: Financial institutions are always seeking methods to improve their security and reduce the danger of being hacked by a cybercriminal syndicate.
Key Benefits Of Making The Switch To Cloud
How moving to the cloud may assist in speeding up digital transformation for financial institutions:
- Improved Speed and Agility: A bank would spend significantly more money and take far longer to launch a new landing page on a legacy system than it would if it used cloud computing technologies. Banks are far more agile and responsive as a result of cloud technology than they were before. Using this method, financial institutions may rapidly roll out new products and services to their consumers. In general, this approach supports banks in reducing their product deployment cycle and making the process of product testing simpler and more straightforward to complete. It is possible for cloud banks to innovate and swiftly publish beta versions of their products, replacing them with newer ones, as well as to deal with errors by scaling down or reversing steps fast. Banks may now test their goods in a real-time environment thanks to cloud computing technology.
- Lower Operational and Ownership Costs: In this age of cloud computing, banks no longer have to spend on the development of new infrastructure for each service that they provide. The use of APIs, rather than developing new applications, allows them to roll out financial services more quickly and at a lower cost in terms of operations and overhead. This enables banks to grow both horizontally and vertically with relative simplicity, and it also provides them with the option to pick services that they consider to be vital while unsubscribing from services that are no longer of use to them. It allows banks to devote more time and resources to their core expertise.
- Enhance Customer Experience: Banks may now leverage third-party software and services to improve the client experience. With the digital transformation, banking as a service will become extremely personalized, ranging from giving solutions directly to WhatsApp to offering consumers fast answers on their phones. Cloud computing helps banks to create an upgraded marketplace for their clients, one in which they can utilize new technological services and data to provide a more complete experience for simplifying and upgrading each financial transaction.
- Provide Higher Security: Initially, when people think about clouds, they instantly think of security issues and hacking attempts. What was formerly considered to be one of the most significant flaws of cloud computing has now been identified as one of its most significant advantages. It is possible to access public cloud servers that are owned by some of the world’s most well-known companies. In the area of cloud server security, Microsoft alone spends more than a billion dollars. This is much more than any one bank could ever spend, making the cloud a far more safe and compliant alternative to traditional data storage and management methods.
A wide variety of cloud services, such as Oracle Flexcube 14.x are offered by cloud operators, making the cloud an unparalleled opportunity. There is little doubt that the banking sector is going to speed up the transition to a hyper-personalized and automated banking system in the future.