How Cloud Technology Can Bring About Digital Transformation in Banks

Introducing new solutions through new technology almost always raises doubts in the professional world. Much like the concerns revolving around the safety of storing and managing data in cloud services.

Cloud technology provides banks with a platform where they can consolidate their data and share it across all departments of their bank. It solves problems in banks where there is a lack of communication and coordination between departments, and also provides a cost efficient solution to managing data.

The majority of concerns related to cloud services are centered around the reliability and the security provided by cloud services. By overcoming their resistance to change and their fear of cloud technology, banks can scale up their data usage without vast capital investments.

Not only are cloud services cost efficient and allow for better scalability, but they transform a bank’s ecosystem to a more customer-centric one. Since data is stored and consolidated in one space, banks can engage with their customers more efficiently and on a daily basis.

By enabling banks to engage more with their customers, cloud services become an essential part in IT infrastructure development. Yet, concerns over security and safety still impede adoption of the technology.

To ease the doubts over security, third-party encryptions can be provided to add an extra layer of data encryptions. Without a third-party, data stored and managed in the cloud is safe as it is, yet the third-party service adds an extra level of security.

Another note to keep in mind is that the security provided by cloud services effortlessly trumps the security currently existing in financial institutions.

Regulators such as the Financial Conduct Authority (FCA) have provided a level of clarity on cloud adoption that has triggered a change in how financial institutions view cloud adoption. An increasing number of financial institutions are gearing towards a more advanced IT infrastructure, leaving behind those reluctant to adapt to change.

Adapting to change is important as the age of technology and information demands adaptability. So, why linger on the questions of ‘what if’ and absolutist statements such as ‘it won’t work’, when the competition is already making adjustments to the technologies of tomorrow?