BTL 756 - Cloud Banking

 

The Banking Tutor’s Lessons

BTL 756                                                                          21-02-2025

Cloud Banking

 

Cloud banking is a term that refers to the on-demand delivery of banking services by financial institutions via the internet.

 

Like other cloud computing services, it relies on remote access to compute resources, such as physical servers, virtual servers, data centers, Software-as-a-Service (SaaS) and more.

 

In addition to offering greater ease and accessibility, cloud-based banking improves the customer experience in other ways, including the ability to pay for many things online. For example, when a customer of a financial institution that provides cloud banking services watches a pay-per-view film from the comfort of their home or summons a ride on a rideshare app, cloud-native digital banking services are used to complete the transaction.

 

In addition to powering many popular consumer services, the cloud ecosystem also helps the financial sector lower costs and meet other business needs.

 

From powering applications that enhance remote work to delivering the high compute power needed to run artificial intelligence (AI), machine learning (ML), and Internet of Things (IoT) applications, banks everywhere are leveraging the power of cloud platforms.

 

 

Importance of Cloud Banking

 

For consumers, cloud banking has made everyday activities like shopping and transportation much easier. Consider the task of buying groceries and picking up your kids from school. Before cloud banking was a reality, these tasks would require multiple stops in different locations. Now, someone can accomplish them using only a smartphone with a cloud banking app.

 

Increasingly, the banking sector is leveraging it to improve data security, create more innovative products, and deploy cutting-edge technologies like AI and ML to automate mundane tasks.

 

Reduced costs                

 

Shifting workloads to the cloud has allowed banks to lower costs associated with data storage and data analysis. Considering banks are required by law to maintain detailed financial records for all customers, this is a significant area to discover value. Cloud banking lets financial institutions shift from an up-front, on-premises data storage model to more flexible, pay-as-you-go solutions that can be adjusted as their needs change.

 

Enhanced data security and compliance

 

Because they protect customers’ most important information and assets, banks are frequent targets of hacking and fraud attempts, but shifting financial services to the cloud has made them safer. Modern cloud banking solutions keep customer data safe through added layers of protection, such as encryption and fraud detection. Cloud banking solutions also help banks stay in regulatory compliance with the ever-changing regulations that govern their industry.

Finally, many cloud offerings have built-in disaster recovery (DR) capabilities that help financial institutions recover swiftly after a security breach or massive outage.

 

Increased AI capabilities

 

Leveraging the cloud has opened banking systems to the power of AI across multiple workloads.

 

Faster delivery of new services

 

Because cloud banking is such a vibrant and technologically innovative space, there are new applications and services being designed every day. This means many cloud banking capabilities are off-the-shelf, dramatically shortening the amount of time it takes a bank to offer it to their customers. When a bank that’s already deploying cloud infrastructure spots a customer need that isn’t being met, chances are there’s already an off-the-shelf application available that would immediately improve the user experience.

 

Sekhar Pariti

+91 9440641014