Cloud empowers businesses to enhance productivity and ensure data security. Cloud solutions aim to eradicate the use of physical space on devices and instead use the infinite virtual space to access data and programs. It empowers users to gain access to storage, data, software, and servers through their smart devices – laptops, smartphones, and tablets. On the other hand, Cloud service providers store and process data from many different locations enabling an all-around check.
The financial industry has been reluctant to switch its operations to the Cloud as it has major concerns about giving up its conventional on-premises applications, regulatory compliance, and data privacy. Cloud solutions for the banking sector and the financial industry provide easier data access, faster collaboration, quicker recovery, and better data security. By using Cloud solutions, users can store data on remote servers instead of local machines. Solution providers manage equipment, maintenance, and software updates.
When it comes to Banks and FL’s, data security is one of their prime concerns. Cloud banking offers reliable customer security with the best possible technologies and practices. Cloud banking solutions provide customized safety recommendations to combat security challenges. Since accessibility of data is also an important concern; data and services are stored on multiple servers for efficiency and faster access. If one server has an issue, a redundant server immediately takes over so there is no downtime for the bank’s customers. Therefore, the banking industry has realized the impact of Cloud technology to achieve business objectives and fulfilling customer needs.
The financial industry has been reluctant to switch its operations to the Cloud as it has major concerns about giving up its conventional on-premises applications, regulatory compliance, and data privacy.
Digital transformation is integral to business growth. Banks and other financial institutions are continuously switching to Cloud technology, which increases business and retains customers. Cloud enhances productivity, ensures better data maintenance, secures business data and documentation, enables automation of tasks, enhances team collaboration, and saves money. Financial institutions work with deep banking knowledge and technological expertise to ensure innovative solutions for their clients. Data safety, reliability, and customer convenience are the key targets for the banking industry today.
Types of Cloud Solutions and Services
There are various types of cloud services, which help businesses to meet their objectives. These include IAAS (Infrastructure as a Service), SAAS (Software as a Service), PAAS (Platform as a Service), DAAS (Desktop as a Service), and BPAAS (Business Process as a Service). Cloud users can also choose where they would want to host the data. There are three basic types of Cloud i.e. Private Cloud, Public Cloud, and Hybrid Cloud.
Public Cloud offers relatively low data protection as the customer shares remote Cloud servers with other customers and their data is more visible to cyber attackers.
Private Cloud, on the other hand, provides a more personalized solution; it is a customized set of hardware and software specific to the customer’s requirements. No two customers share their Cloud servers.
Hybrid Cloud is a mix of Public and Private Clouds. Though slightly more expensive than the public domain, it enables customers to allocate chosen files and tasks to a public or private domain. It is a mix and match of both and offers better security than Public Cloud.
Benefits of Cloud Banking
Reduced processing costs and faster processing speeds are two of the key benefits that the Cloud offers to the banking industry.
Cloud solutions offer greater scalability, which gives financial institutions the freedom to best serve their customers.
Choosing the right Cloud strategy makes it easier for banks to provide personalized service based on customer needs and preferences.
Detection and prevention of fraud are possible by analyzing any suspicious activity before it causes damage.
Understanding customer preferences has become increasingly important over the years, and Cloud technology helps gain insight into customer behaviour patterns.
NdcTech, a Systems Limited company, is one of the fastest-growing consulting companies enabling Banks and financial institutions to accelerate their mission-critical digital transformations. NdcTech builds Banks of the future using the world’s leading platforms by Temenos. The company adds value through its banking domain expertise and in-depth experience in performing large-scale implementations with market-specific accelerators. Their services range from building front-end digital to back-end core capabilities transforming banks for the new digital age.
NdcTech is one of the leading players in the cloud banking space, providing various services such as Lift & Shift, Everything as a service, Cloud engineering & automation, & Cloud Integration services. It has a strong partner network of renowned firms such as Oracle Cloud Infrastructure, Microsoft Azure, Huawei & AWS that helps Banks reap the benefits of new technologies and keep pace with rapidly evolving customer needs.
Recently, NdcTech has partnered with Invest Bank, one of the prominent Banks in the UAE to offer them end-to-end Core & Digital banking transformation on the Cloud. Ahmad Mohamed Abu Eideh, CEO, of Invest Bank stated that because of their partnership with Temenos and NdcTech, the bank’s core and digital banking services will be working seamlessly on a single platform. This will help the bank to foster innovation, automate workflows and deliver digital experiences to meet customers’ needs faster and at a lower cost.
NdcTech also liaised with Tourism Development Fund and enabled them to launch digital lending services within 60 days on the Cloud. Qusai Al-Fakhri, CEO Tourism Development Fund, said that their business plays a vital role in driving the growth of KSA’s tourism sector and in the diversification of their economy. With Temenos and NdcTech, the company has been able to build a greenfield digital service to serve its investors in a record time.
NdcTech has also collaborated with Bank ABC, one of MENA’s leading international banks, to replace its core banking system & power its subsidiary, ila Bank, the region’s fastest-growing digital mobile-only bank, with Temenos’ core banking platform on the Cloud. With NdcTech’s accelerators, hands-on experience within global markets and focus on user experience, Bank ABC is well-positioned to offer mission-driven products and services that will delight their customers.
Cloud Banking is one of the largest orchestrators of technology in the banking industry as it provides increased efficiency in operational processes, improves customer services, and reduces barriers to entry for new businesses by offering greater flexibility. It is cost-effective and offers great opportunities for banks to minimize various costs associated with on-premises system maintenance. The way forward for the financial industry is to implement cloud-based solutions with a tailored approach to offer personalized solutions and innovative services.
The writer is a Data Scientist, BI Trainer & Consultant at Ai Datayard, Course Author Educative, Kaggle Expert & Github contributor.