Cloud computing is a new notion that many banks and financial businesses are considering. It is one of the fastest-growing phenomena on the internet. Cloud tech in the banking industry is an intriguing notion that incorporates numerous computers connected to the internet or any other real-time communication network.
The following are uses of cloud tech in the banking industry;
1. Security
Cloud tech in the banking industry offers excellent data security, particularly for sensitive data such as client information. The data is housed in a centralized data storage system that requires strong authentication to access. Cloud tech in the banking industry prioritizes data protection, which is why it is advantageous to banks and the financial industry.
Approximately half of all corporate fraud efforts in France involve corporations being duped into redirecting cash to a criminal’s bank account rather than paying suppliers. SiS, a fraud-prevention firm based in France, established a blockchain on the IBM Cloud that works as a tamper-proof store of verified bank information, as well as a tool that allows clients to check transactions and discover abnormalities in seconds, with the support of IBM. Over 160,000 supplier bank accounts are currently verified using this approach. The manual fraud control burden at SiS has been reduced by 80%. SiS can readily scale this system as its customer base increases thanks to an agile cloud architecture.
Bank executives are concerned about data security. Considering how an enterprise’s present infrastructure and capabilities may be restricting its capacity to recognize and manage emerging risks and vulnerabilities—and how cloud tech in the banking industry might help—is a key component of understanding the cloud. Because of the tools inherent to each cloud tech in the banking industry provider’s environment and the fact that cloud providers often take responsibility for the security of the lower-level infrastructure layers, security in the cloud is different. The fact that cloud providers and the customers they host share security responsibilities affects how businesses should anticipate and prepare for security threats.
2. Customer Relationships
Because of the cloud’s mix of massive data and possibly infinite processing capacity, banks may gain a greater understanding of their customers than ever before. Financial services firms who pass on this once-in-a-lifetime chance to create systems that are highly tailored to their client’s needs will pay the price by losing key demographics. For example, 52 percent of UK SMEs believe banks are unfriendly to their businesses, while 44 percent of millennials in the United States believe their bank does not understand them.
In an increasingly competitive market, banks are unable to thrive unless they recognize these groups and provide appropriate services to them. When ING Direct changed its name to Tangerine in 2013, it implemented a whole new business strategy to guarantee that it could more quickly collect client input and successfully offer services based on it.
The bank used Microsoft’s Analytics Platform System (APS) and Azure HDInsight to do this. Tangerine was able to translate client data into actionable insights faster and more simply than before after migrating 45 business intelligence (BI) end users to a Microsoft BI environment. Tangerine has been able to give the incentives and services necessary to keep and develop its client base because of its thorough understanding of its consumers. Tangerine has also been able to alter new product rollouts in real-time based on consumer reactions, putting the bank one step ahead of its competition, thanks to the Microsoft cloud.
3. Automating Business Processes With KPMG
To assist satisfy regulatory requirements, professional services firm KPMG chose to provide UK banking customers a quick-to-deploy, end-to-end solution. To do so, the company needed to figure out how to deal with constant business change. IBM Business Process Manager (BPM) was chosen by KPMG, and it was upgraded by designing an optimizer application. Business analysts were able to build new business processes 80 percent faster than they could with a standard BPM programmer skill set.
4. Financial Crimes Investigation
To assist satisfy regulatory requirements, professional services firm KPMG chose to provide UK banking customers with a quick-to-deploy, end-to-end solution. To do so, the company needed to figure out how to deal with constant business change.
IBM Business Process Manager (BPM) was chosen by KPMG, and it was upgraded by designing an optimizer application. Business analysts were able to build new business processes 80 percent faster than they could with a standard BPM programmer skill set.
5. Bank Supervision
As cloud tech in the banking industry becomes more integrated into bank operations, the scope of bank oversight may grow. This might result in technical resource mismatches as well as relationship management concerns for Cloud computing services that aren’t used to doing rigorous inspections. In April 2019, the Federal Reserve Bank of Richmond conducted a formal examination of AWS. Close integration between banks and cloud providers might hasten regulators’ need for frequent cloud computing examinations to monitor elements of their ties with banks, such as security and financial system stability threats.
