As we continue to share key insights on the latest technology trends in the financial industry, Cloud technology is the trending buzzword in Financial IT circles.
The question is, how can cloud technologies address financial industry concerns over the strict regulatory compliance, data security (including privacy and disaster recovery), and cost savings, while maintaining the focus on efficiency and customer experience.
Cloud for the Financial Industry
Technology upgrade cycles continue to shorten and financial institutions are looking for the opportunity to retire their legacy systems. Due to these trends, cloud technologies have become one of the key players leading the digital transformation in the financial services industry.
On-premise environments are more susceptible to breaches and security threats, due to the complexity and fast changing cyber-security world. When you’re dealing with confidential and sensitive data, it’s crucial that multiple measures are taken to prevent any security breach. By leveraging the cloud, financial institutions can migrate their IT infrastructure to hosted tier 3+ virtual private data centers that meet SSAE 16 auditing standards, ensuring the highest level of security by combating infiltration. Cloud infrastructure enables IP filtering and dedicated firewalls are associated with each cloud resource.
In a consumer facing industry, if there’s downtime then that means loss of revenue. Financial institutions can leverage the Business Continuity and Disaster Recovery (BC/DR) strategy of the cloud that makes sure that the data is secure and accessible in case of a disaster or theft as it’s stored in multiple geographically dispersed data centers.
As financial institutions migrate their IT infrastructure to the cloud, they can reduce their operational expenditures and forget about those multiple server costs along with the hassle of updating their hardware and software. The cloud also keeps you up to speed with the latest IT infrastructure that is essential for ensuring security and performance.
Cloud technology also allows greater mobility for the financial services industry as they’re no longer tied to their desks. Employees can access the required information and applications from virtually any device, thus making them more effective.
Taking a peek at Deloitte’s Banking and Securities Outlook 2017, we see changes in operating models and investments in emerging technologies that can ensure greater efficiency and competitiveness.
Cloud technology is among the few hot technologies that have the potential to transform the Financial Services Industry by making them secure and efficient while slashing their overhead costs.
At dinCloud, we help financial institutions leverage the latest Tech trends to stay competitive and efficient. Stay tuned for more key insights.
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