Can the cloud assist the banking industry?

The banking industry has faced a vast number of challenges recently and continues to do so, particularly with increasing regulations, unhappy customers, strengthening competition and decreasing levels of profitability.

So, in a time full of change, it would seem that banks need to keep up with the times! Cloud hosting can certainly help the banking industry do this…

Modern Demands

As more banks begin to transform their product offerings, channels and customer services to reflect modern day demands, banks will need to enable a more competitive, consumer-focused business model that will also need to be more efficient.

This is where cloud computing comes in.

Thanks to its low cost, high scalability, unlimited processing power, agility, storage benefits and speed, banks will certainly be in a beneficial position if they properly implement cloud hosting.

Some key movements in banks’ use of cloud computing have been identified this week, such as cloud based financial service offerings that will be available through social and mobile media, a move that could help transform customer relationships.

Furthermore, private clouds are set to play a core role in banking, enabling banks to maintain control over the location of sensitive customer data.

Redefining Relationships

So, could cloud computing really work within the banking industry? Well, it will certainly work to redefine the relationship between banks and customers as cloud computing will enable banking services to be faster, more accessible, more personalised and all round easier to use.

But will banks actually want to adopt the cloud?

Many banks with a deep infrastructure may be a little reluctant to have to restructure things in order to incorporate the cloud, however, some banks have already chosen areas where they can implement the cloud and they have also already implemented SaaS and BPaaS.

This goes some way to back up the idea that cloud hosting solutions are not necessarily an all or nothing issue.

Cloud computing is also likely to be adopting primarily by smaller, younger banks and if beneficial results are quickly apparent, then it won’t be long until other banks follow suit.

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