The world is changing like it has never before after the Pandemic. To keep up with the fast-paced world of business, cloud migration has become unavoidable. One of the sectors that have immensely benefited from cloud migration is financial services. Despite its initial reservations against cloud adoption, the industry is now rushing towards the cloud platform. So let’s go deep into why cloud computing is crucial to the financial services industry.
5 Reasons Why Cloud Migration is Essential for Financial Services
1. Increased Security
The biggest reason why the financial services sector was resistant to cloud adoption for a long time was security. But, ironically, security is one factor that is driving the industry more towards embracing cloud technology. Secure cloud solutions offer multi-layered protection on sensitive client data.
Data leakage in the financial sector is not without legal consequences. So, a cloud migration strategy becomes crucial to the financial sector. Cloud service providers will help build their infrastructure on quality equipment. The built-in redundancy in cloud systems leaves no single point of failure.
The cloud platform also offers data backup through multiple servers spread across different geographical locations. As a result, there’s minimal risk of data loss in case of a hardware malfunction or server crash as your data is stored in various redundant locations.
Most cloud service providers offer in-built protection against viruses and malware, email encryption and multi-layer spam and virus protection to keep your communication safe. It is essential for financial service companies to look into the security provisions offered by the cloud solution provider of your choice before migrating to a cloud platform.
2. Increased Efficiency
Another pertinent reason why cloud migration is a must for the financial sector is heightened business efficiency. Cloud migration streamlines your business operations, especially when operating across multiple markets and catering to varied demography. The financial service providers which can analyse and interpret rich market data effectively gain an edge over their competitors.
Cloud migration is the basis for Big Data Analytics in the banking sector which helps in the conversion of data flow into actionable business insights. This will also aid the banks to process customer feedback and implement changes faster. Studies show that Big Data analytics in the banking sector is expected to register a CAGR of 22.97% between 2021-2026. Big Data services will allow financial service companies to organise their data stream. This will help serve their client in a more effective and personalised way.
3. Cloud Migration Makes it Cost-Effective
As the size of a company grows, so do its information technology requirements. The cost involved in building new data centres and servers and hiring staff trained to operate these often discourages many aspiring entrants into the financial service business sector.
By switching to the cloud, financial service companies can cut back expenses on dedicated hardware and software. They can also save on hiring the specialised workforce required to handle the accompanying IT maintenance needs. The funds saved on IT infrastructure can go into business expansion.
The best case study in this direction is the Melbourne-based ME Bank. This retail bank with a workforce of 800 employees manages 20 billion USD in assets and 2,80,000 customers all over the country. By migrating from its on-prem infrastructure to a more efficient cloud data centre, this digital bank saved up to 75% of its expenses on development and testing.
4. Maintenance Free
Saving the funds on onsite infrastructure and a specialised workforce for IT support is not a one-time saving. It has long-term benefits. By investing in a cloud service, you shift all your IT infrastructure needs to a dedicated service provider. This means the maintenance, updates and upgrades as per the current IT needs of the firm will be looked after by the service provider.
Onsite infrastructure, software and hardware, requires regular monitoring as keeping your IT equipment up to date is essential for security and performance. With less on-premise equipment, you save a lot of money spent on onsite maintenance purposes. Moreover, data can be stored and transferred for much less than it could on onsite hardware.
5. Flexibility and Growth (Scalability)
Cloud partnership allows your business to grow and change as per the changing market trends without a significant investment. The ability to scale processing capability up and down according to the changing market developments and customer demands helps a financial service stay ahead of the competition.
When your business expands, you can accommodate more workforce, storage capabilities and other infrastructure requirements without spending much. Cloud offers the flexibility of working from anywhere at any time. So your workforce doesn’t have to be tethered to a brick and mortar office. This flexibility enhances productivity besides saving expenses.
365Solutions for Cloud Migration
365Solutions, the leading cloud solutions provider in the UK and Europe, caters to the cloud migration needs of financial service companies. Visit their website for a complete view of their products and services. You can reach them at +44 20 3880 1220 or firstname.lastname@example.org.