Cloud Computing for Banking
- Introduction
Cloud computing is the future and is among the technological evolution witnessed in the field of technologies. Cloud computing has seen the quickest adoption than the other technology within the domain. Everything these days runs on cloud computing from corporations to users. Everyone depends on the cloud directly or indirectly. Cloud computing has all the knowledge, messages, applications and significantly additional in a very virtual computer code like Google Drive and Dropbox, that area unit speedy and safe to access without wasting time . Cloud computing will be deployed universally in much no time and supply the foremost extreme flexibility, nimbleness, and cost-sparing IT operations to business for increasingly profitable and consistent development. This, thus, is creating entrepreneurs’ modification to cloud computing for finishing business activities.
2. Why cloud computing for Banks
The banking system is home to an oversized volume of client information and is often wanting to offer the simplest services to its customers. In such a state of affairs, cloud computing technology is a transformative digital answer that offers unequaled levels of security, agility, and measurability to the banking sector while boosting its capability to handle client information.
Strategically enforced cloud computing services permit banks to utilize resources in a very extremely versatile and economical manner with the assistance of information analytics, information storage, and execution. Further, the cloud technology conjointly helps the banking system to boost revenues, operational potency, and also the shopper pairing department.
Let us currently see intimately a number of the most effective ways in which cloud computing technology edges the banking industry:
a. Flexibility
The cloud allows the banking system to speedily adapt to dynamical client and market wants. It provides an extra area for banks to fulfill future client demands and this flexibility helps banks to sustain within the market.
b. Agility
Cloud-based services will greatly enhance the productivity, agility, and potency of the industry. It will facilitate banks to apportion resources and relieve their IT employees from the administration of IT infrastructure, permitting them to specialize in a lot of innovative tasks like fast a product’s or service’s time to promote.
c. Auto Scalability
On-demand cloud services change the industry to mechanically scale resources in step with the necessities of the customers. The capability, redundancy, and resiliency risks related to ancient technology will simply be down with the assistance of cloud technology.
d. Operational potency
Cloud technology facilitates banks with the most chance of desegregation of new technologies and applications in the future that maximizes the productivity of their operations. It permits the IT employees of banks to specialize in their core business operations and improve processes for achieving higher operational potency. investing in centralized management of knowledge, the cloud also can facilitate banks to eliminate complexities associated with the changes and increase of knowledge.
e. Better Client Servicing
Cloud computing facilitates banks in the quicker development of merchandise and services. It does not solely permit the banking system to spice up computing power so as to fulfill the growing demands of their customers, however, additionally provides higher insights that helps banks to make custom-built services for his or her clients
f. Models
Financial institutions are offered an option to move to a more flexible business model that reduces the operational cost. There are different models considering computing service, operations, and deployment.
3. Cloud Service models:
Cloud service models are divided into four major parts -
a. Business Process-as-a-Service (BPaaS): The cloud can be used for multiple business processes like payroll, human resource(HR), billing, etc. BPaas is a combined model which gives process expertise.
b. Software-as-a-Service (SaaS): Cloud users can access the software as well as data via their web browser. There are different types of software that can deliver in such a format. For example, accounting, customer relationship management, enterprise resource planning, invoicing, and many more.
c. Platform-as-a-Service (PaaS): It is a type of service that provides the complete platform to the application including interface and database, storage and testing. This makes the development simple and helps in maintenance.
d. Infrastructure-as-a-Service (IaaS): This type of service provides the infrastructure to the application such as servers and datacenter space. With the help of IaaS, the model can be fully outsourced by buying required resources.
4. Cloud Deployment Models
There are different methods to deploy clouds.
a. Public cloud: As the name suggests, this cloud infrastructure is made available to the public and is owned by some organization that sells cloud services.
b. Private cloud: This is one of the most secure among all the cloud options. It is operated only for a specific company.
c. Hybrid cloud: It is a combination of two or more clouds of private or public type. They are unique entities and provide services.
5. Cloud Operating Models:
The service delivery model helps in determining an appropriate operating model. There are 3 types of operating models for cloud services:
a. Outsourcing vendors: This approach uses third-party vendors to handle cloud operations. The model is a combination of resources and investment to drive cloud services for multiple banks
b. Staff augmentation: Bank or financial firms can hire people with expertise in cloud operations. They can also have additional staff to handle pre-existing offshore captive centers.
Conclusions
While planning to shift to cloud computing tasks, banks should decide on the services and delivery models according to their necessities for the operations like cost saving, flexibility, and pay-as-you-use models. Banks must undertake a step-by-step transformation to cloud computing services, evaluating projects based on the application and the data used and generated in the projects. Projects with lower risk may cover customer relationship management and business content management. And projects with higher risk will include core business features such as wealth management and core functions of banking.
In the long term scenario, Banks will have a portfolio with cloud based services,on-premises and available for use across all private, public, and hybrid cloud based models, where the services will be added one by one. Private clouds are predicted to grow into the deployment model in cloud based services among banks, allowing financial institutions to have full authority through ownership and applications of cloud based systems.