Cloud computing, also called cloud storage, is a technological "hack" that at this point is becoming more than mainstream. Organizations—in addition to private consumers—from a wide range of industries are now using the internet to store and deliver company data, applications, and services.
This new technology is ubiquitous and requires the streamlined use of servers, software, databases, analytics, IT support staff, and more. But is the excitement really worth it? Many financial, technology, and business experts seem to think so. Check out these five reasons why using cloud computing can be so beneficial for your bank.
5 Benefits to Using Cloud Computing at Your Financial Institution
Why are so many organizations in the banking and financial sector making the switch to cloud-based computing? It must be because of all the upside:
- Cloud computing is cost-effective. Banks can do more banking and invest more time and money in optimizing the customer experience when they don't have to continue putting up capital for hardware and software at data centers.
- Cloud computing can mitigate risks and enhance security. Traditional technologies like legacy systems often present organizations with issues surrounding bandwidth, capacity, resiliency, security, regulatory and legal compliance, and redundancy. These and other issues can draw heavily on a financial institution's resources. Cloud computing is an innovative way to minimize the risk of such issues, as is the experience of thousands of bankers.
- Cloud computing promotes innovation and helps bank stay competitive in a digitized world. Cloud-based computing helps banks deliver and access information, products, and services quickly. The streamlined functionality of cloud computing also allows a financial institution to allocate resources from their IT department toward projects that promote greater innovation and progress.
- Cloud computing enhances organization productivity and efficiency. Since cloud computing moves faster, that means the bank can move faster, too. This increased efficiency allows for better productivity and eliminates the need for data stacking and other time-consuming issues often associated with legacy systems.
- Cloud computing is reliable and scalable. Even though "the cloud" is relatively new, cloud-based computing systems have so far proven to be highly reliable, even when handling a large volume of data. Advanced security options add to the ease and appeal of use. Plus, the internet-ready design of cloud computing allows banks to do things like monitor several hundreds or thousands of transactions per second—which can dramatically cut down on the risk of errors, breaches, fraud, money laundering, and other anomalies.
Are there limitations to cloud computing that banks should be aware of? Like any new innovation or technology, there certainly can be—such as the possibility of security breaches and data confidentiality violations. The good news is that such serious risks can be mitigated by various strategies, including data encryption and other techniques made possible through reputable cloud providers and IT support specialists. A good IT support team can also help you determine which vendor to use and how to make the transition from a localized to cloud-based operating system without derailing your company's day-to-day operations.
RELATED: 7 Questions To Ask About Your Bank's Cloud Strategy
Ready to make a switch from a local data system to the cloud? Connect with an experienced business and technology team who can help you make the transition to cloud-based computing as smoothly as possible. Call Integrity Technology Solutions today at 30-664-8150 to schedule your consultation.