Business
July 29, 2022

Benefits of Using Cloud Technology in the Banking Industry

Benefits of Using Cloud Technology in the Banking Industry

Cloud technology has become a critical tool for financial institutions, firms, and banks. The banking sector has been struggling for a long time to keep up with the pace of modern information technology innovations. With the push for digitization that the pandemic caused, it is now clear that the financial industry needs to integrate cloud technology to employ best practices in their day-to-day operations. It helps firms to stay competitive in today’s challenging and ever-changing business environment. Banks and financial firms that adopt cloud technology see benefits such as increased productivity, reduced operating costs, increased security, and the most important aspect, a better customer experience. Banks can also use cloud computing to gain valuable insights into data which results in faster innovation.

Why should banks and financial institutions make the move to cloud computing?

When making the switch to cloud computing, banks and financial institutions can enjoy several benefits. Cloud computing offers increased security, faster processing speeds, and lower costs for service. Besides these benefits, cloud computing can also assist with data analysis and fraud detection. Many financial firms have made the switch or are ready to make the change because they have realized how this technology can help them meet their business objectives and satisfy their customer needs at the same time.

Cloud technology can improve the experience of your banking customers.

One of the most appealing benefits of cloud computing in banking is the improvement in the experience of the customer. Banks that use cloud technology can offer their customers and clients anytime and anywhere access to their accounts. Cloud computing also offers greater scalability. Platforms can be scaled up or down as needed depending on industry demands. This gives financial institutions the resources they need to serve their customers in the most effective way. There is also cost reduction in cloud computing. Banks can save money by migrating their applications and data to the cloud. If the financial institution works with a managed service provider such as Tekscape, they are likely to offer pay as you go pricing or a flat monthly fee.

Cloud computing improves the processing time of financial transactions

Cloud platforms are designed for quick performance and are able to handle large amounts of data processing easily. This fast performance allows banks to improve their transaction processing speeds and reduce latency issues. Cloud computing can also help with compliance requirements. Banks are required to meet regulatory compliance, and many cloud platforms are automatically compliant with financial industry regulations. Cloud based technologies also help to ensure compliance by keeping up with the latest industry requirements and standards.

Cloud storage with data management for financial firms

Cloud computing can also help banks to better manage their data. High-quality data management is essential in the finance industry. Bank accountants and other employees are required to process and store massive amounts of data and sensitive information daily. A cloud-based storage solution can allow for a large amount of data to be stored securely while still being accessible at any time or location. Employees who need to access this data must have defined user permissions.

Secure financial data with cloud computing.

Any financial firm that has lost data in the past knows that it is an incredibly painful process to try to recover it in a timely and affordable fashion. Managed service providers can offer protection of that data as well as offer quick recovery time if it is lost. Recovering data from a cybersecurity breach, power outage, or natural disaster often requires a lot of time, effort, and money. Check out our disaster recovery service as a service (DRaaS) to ensure your data can be restored in a timely and efficient fashion if there is a breach or loss.

Increasing cost effectiveness in the banking industry with cloud technology

Cost effectiveness is not a large concern in the financial industry but the economic benefits that come with cloud technology cannot be ignored. Using this technology can help lower the costs of servers and data centers as well as other pieces of IT infrastructure. Using cloud technology along with a managed service provider can remove the cost of ownership and maintenance of the infrastructure. This is because the managed service provider maintains and owns the infrastructure in the cloud.

Cloud computing can dramatically increase the security of a financial firm’s data

Security is a high priority when learning and embracing any modern and or new technology. This is especially important when using this security to protect the sensitive data of financial firms. There has been a year-on-year increase in the number of data breaches and cyberattacks on banks. Many of the breaches come from employee error.

Without proper training, banking employees may fall victim to ransomware attacks and phishing emails. Traditional IT setups increase the chance that these breaches will bring the entire system down. Using cloud computing with security provides a more resistant defense architecture and allows security checks to be performed on a regular basis. We also offer cloud-based cybersecurity awareness training to financial employees to further lessen the chance of a data breach or cyberattack.

Tekscape's team of engineers has over 15+ years of technical cloud experience within financial services. When it comes to cloud architecture, digital transformation, cybersecurity, and collaboration, our team is ready to support your infrastructure needs. Check out our current financial firm clients and learn how we have helped them transition to a cloud computing environment. The financial services landscape is extremely competitive. The environment demands for safe, convenient, and intuitive digital experiences. Tekscape helps financial services meet these expectations so that clients are attaining their goals.

Tekscape has been a recognized managed IT services company since 2007, headquartered in New York City. Currently, we operate via two physical locations in the United States. Based on our engineers’ deep technical knowledge and leveraging our strategic relationships with the world’s leading cloud providers, Tekscape excels at supporting companies globally with information technology solutions. Tekscape services include managed IT, managed security services, cloud computing, network, advisory services, compliance, and collaboration.

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