Cloud Computing Benefits Financial Sector - InformationWeek

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5/10/2016
08:38 AM
Mohtashim Alam Nomani
Mohtashim Alam Nomani
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Cloud Computing Benefits Financial Sector

By embracing cloud computing services, companies in the financial sector are able to add efficiency to their operations.

Cloud computing is one of the rising areas in which IT services are being offered to businesses as a commodity. A cloud computing contract incorporates services for different software and applications, as well as the processing and storage of data. These services help clients enhance the efficiency of their work processes and make it possible for clients to respond to and counter issues swiftly, resulting in increased customer satisfaction.

Finance Opts For Hybrid Cloud

Cloud computing is prevailing in many domains but still hasn’t fully entered the financial sector because of concerns about the security and control of data.

Nevertheless, cloud computing offers both public and private clouds for sensitive information and other data. Therefore, some financial firms are starting to adopt a hybrid cloud model that provides them with the best of cloud services and a secure, scalable, and flexible platform.

Other than security, cloud services in the financial sector have to face compliance issues and increased pressure from regulatory authorities. The majority of financial companies are likely to keep control of their systems in-house, preferring to place data in private clouds. There are several reasons for this choice, including the following:

  • Data privacy
  • System security
  • Contingency planning and business stability
  • Risk management

Cloud Computing Boosts Financial Agility

The adoption of cloud services in the financial sector will increase the agility factor of businesses -- that is, the ability of financial organizations to enter new regions. This will help in the growth and sustainability of the organizations, but there will always be a need to maintain the necessary standards to avoid and mitigate the aforementioned risks. This can be achieved by executing the following activities:

  • Efficient supervision of all associated risks in an IT outsourcing setup
  • Fulfillment of the risk aversion requirements, followed by an assessment
  • Coordination of an effective contract based on a business’ needs
  • Regular monitoring of the systems and services being provided

By embracing cloud computing services, companies in the financial sector are able to add efficiency to their operations. As long as the risks can be managed, there are many benefits -- cloud services can eventually help companies enter new markets, benefit from new opportunities, and strengthen their business processes. Further, cloud computing can help financial firms reduce the setup and operating costs related to installing new hardware and software or acquiring storage in the data center by making the necessary infrastructure resources available.

Mohtashim Nomani is an IBM IT specialist for technical support services. He leads a software support team responsible for delivering quality of service to IBM clients. He is responsible for working with the IBM global marketing and sales teams to ensure that project timelines ... View Full Bio
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Row3n
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Row3n,
User Rank: Apprentice
12/19/2016 | 11:11:00 PM
Re: Big investment banks need rapid apps
Working in the finance sector myself, I can understand where the stigma is in switching over to cloud services for data storage. It may seem more efficient internally but it can leave the whole system wide open to unauthorised access if there isn't proper maintenance of the data framework. That in itself can be costly!
Charlie Babcock
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Charlie Babcock,
User Rank: Author
5/10/2016 | 5:18:15 PM
Big investment banks need rapid apps
Hybrid cloud is particulary well suited to financial services, not only for data security but also to provide a common application development platform throughout the organization. Large investment-oriented banks are plagued with heavy development needs and dozens of different approaches. Then the new applications need to be maintained. By standardizing on a private cloud architecture, the competing and sometimes conflicting approaches can be rationalized. That was one of the reasons State Street Bank and BNY Mellon moved in that direction.
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