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August 21, 2022 Blog
Welcome to yet another post from our weekly series, which is usually based on how cloud computing helps different verticals in meeting industry-specific challenges and emerging as the winner of the time. In our previous post, we covered cloud migrations for the Pharmaceutical industry (LINK: How Does Cloud Migration help your Pharmaceutical Business? Migrate to Cloud with LogicEra!) and discussed how Pharmaceutical companies are leveraging the power of the cloud to improve data access & marketing operations, maximize cost efficiency, increase security, etc. In this post, we will discuss how cloud migration is helping Financial Services businesses in offering distinguished customer experiences, enhancing risk management, fighting fraud, reducing costs, and much more.
Digital transformation was anyway becoming crucial to surviving the ever-evolving and disruptive technology. The COVID-19 pandemic made it more of a necessity than a choice. However, among all those industries whose wheels kept turning amid the unremitting challenges of 2020, is the Financial Services industry as well. The accelerated adoption of digital technology like cloud computing helped the financial services workforce to not only continue the work but also serve its customers in a new and improved way.
Attributed to the COVID-19 pandemic, the cloud infrastructure market is growing by 25% in 2021. And, if you talk about the finance cloud market size specifically, according to the report generated by Markets and Markets, it is estimated to grow from USD 9.89 billion in 2016 to USD 29.47 billion by 2021, at an estimated Compound Annual Growth Rate (CAGR) of 24.4%.
Financial Services market leaders are realizing the role cloud plays in making a business future-ready, especially now that the COVID-19 pandemic has proved how unpredictable the future can be. The significance of the cloud has not remained hidden whether it is about delivering innovation, customizing the customer experience for improving retention & satisfaction, or staying agile & competitive. In this article, we will discuss the factors that have triggered the acceleration of cloud adoption by Financial Services companies. So, check out these factors one by one.
The hackers keep working to invent new ways for gaining access to your sensitive data, and the security measures you take today become outdated tomorrow. The same goes with a Financial Services business as well. However, by migrating to the cloud, they can give their data multi-layered protection and stay ahead of the shifting security demands. In the cloud, the data, which is preserved in the centralized storage, can be accessed through refined authentication methods only. The systems are updated consistently by the cloud service providers (CSPs) for any emerging security threat and the latest security best practices are followed by them. The CSPs also provide new encryption techniques, software patches, and enhanced login protocols as well as real-time identification of suspicious activities and unauthorized users if any.
Several industries are leveraging big data & analytics and getting benefitted from it. Financial Services businesses are no exception. Cloud not only makes years’ worth of data easily available and accessible to Financial Service businesses but also helps these businesses in quickly analyzing diverse datasets. This ease of access to and analysis of data, in turn, helps financial institutions in making more informed decisions that are not only predictive but even holistic. Through the cloud, they can innovate faster and gain better insights into their target market, especially their customers’ needs. Several Financial Services businesses from across the world are leveraging the power of the cloud for providing their customers with new & customized features & functions created to meet their requirements. Moreover, since with the cloud the commitment of resources is a lot less, making mistakes and learning from them are still affordable.
As we discussed above cloud makes innovation easier and faster, developing quality customer experiences and streamlining operations become easier with it. The insights you gain into customer behavior with the help of advanced analytics capabilities could be used for personalizing offers, optimizing products, and improving customer experience & satisfaction. Moreover, migrating the enterprise data to the cloud helps financial firms in attracting new talent as cloud capabilities & tech solutions facilitate new ways of working that include skill sets like automation & human augmentation. As a result, connectedness, productivity, and transparency are drastically enhanced. Besides, the revenue is expected to go higher as costs incurred in optimizing operations go down.
Moving to the cloud from on-premises saves you from investing in proprietary infrastructure. Neither you are required to make the upfront payments associated with hardware, nor bear the continuous costs that kind of hog your budget for only keeping the hardware & software updated. Moreover, financial service businesses get greater flexibility when it comes to managing costs. By moving to the cloud they switch their expenses from fixed to variable. This shift enables them to pay more attention to funding their critical business initiatives instead of burning cash for maintaining under-utilized equipment. According to a recent report, for 88% of financial institutions, a reduction in TCO (total cost of ownership) is the biggest benefit of cloud adoption.
The unified platform bestowed by the cloud for sharing data among teams and people helps organizations in integrating various business units. This integration translates into more integrated and improved decision-making processes yielding quicker solutions to customer challenges and problems. Not just that, by creating standard or connected data sets, financial institutions can gain actionable and more sophisticated insights & analytics, which in turn accelerates collaboration and decision-making.
These were the five benefits of the cloud, specific to Financial Service businesses. There are plenty more like scalability, agility, improved resilience, etc. irrespective of what business would that be. Whatever the benefits may be, it is for sure that the cloud is crucial for financial services businesses. However, for reaching their value goals, they must have an end-to-end approach when it comes to cloud migration. As far as cloud migration services are concerned, they have dramatically adjusted based on the industry’s needs and regulations. By making the cloud the focus of your business transformation, you can certainly realize its huge potential.
Of course, migrating to the cloud could be a worthwhile move but don’t forget it is not as easy as it sounds. You must first research well before you jump onto the cloud computing bandwagon. Make sure all your cloud implementations are backed with an effective cloud migration strategy. Just in case you require any supplemental support you can get a cloud consultant on board or hire a Managed Services Provider (MSP). There are several cloud migration service providers that provide cloud services for the Financial Services industry as well. One of the most reputed cloud migration companies in the UK and UAE is LogicEra. The MSP helps you seamlessly and safely migrate your infrastructure to the cloud within the shortest possible time.