Cloud Computing in the Financial Services Industry
As cloud computing moves to become a dominant force in the technology sphere, many industries are adopting cloud-based services. Within the finance world, cloud computing is already a multi-billion dollar industry, and it is growing at lightning speed. These new technologies are allowing for greater innovation and efficiency for financial services, as well as going a long way to promote cyber security. So, it should come as no surprise that companies which have adopted cloud services are already seeing huge returns on their investments.
Cloud computing is bringing many innovations to financial services.
As with any new technology, cloud computing has created new possibilities as it has become integrated into financial services. One major innovation is the analytics which have become possible with the centralization of data on the cloud combined with state of the art AI. This has made it easier for companies to analyze huge amounts of data and make predictions in a number of different areas – from market trends to shifting customer preferences.
The centralization of data has also helped to better integrate the financial services industry. Since all the data from a company is centralized and managed by a cloud provider, this ensures that different departments will be able to access what they need with ease. Outsourcing many services that were previously in house to the cloud has also gone a long way to increase efficiency and reduce overhead for companies operating in the financial services market.
Many HR-related tasks are now moving to the cloud. Things like payroll are perfect candidates for cloud-based solutions which focus on automation and centralization of data. Even marketing is moving to the cloud, in large part due to superior data management and cutting-edge algorithms. On the customer end, where the flexibility of the cloud allows for increased self-service, cloud-based payment processing is in high demand due to enhanced security and user experience.
Cyber security is enhanced with cloud computing.
In an era where data is an extremely valuable commodity, robust cyber security is essential. While previously companies in the financial services sphere needed to rely on an in-house IT team to ensure the security of their data, by outsourcing to the cloud, cyber security is now handled by teams of experts and is taken very seriously. Due to stringent data security regulations in finance, cloud computing companies operating in this market are dedicating serious resources to ensure compliance.
However, conducting cyber security audits are still necessary for any corporation which deals with large amounts of sensitive data, but even audits are made easier and more efficient with cloud-based services. With state-of-the-art AI tracking, cloud computing can detect and isolate abnormalities within its system, helping to identify any malicious activity in the network, or employees who are unintentionally misusing a system. On top of this, multi-cloud architecture which allows for dispersion of sensitive data can go a long way to improving cyber security.
With the innovations and improvements to cyber security cloud computing is bringing to financial services, it is no wonder this technology is yielding high returns in the market. Companies that hold to old models of data storage will find it difficult to compete as the cloud continues to offer new services.