7 Ways Cloud Computing Is Beneficial in Finance

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Financial firms have turned to cloud computing for help with the pandemic’s impact on their work, and the use of such technologies has skyrocketed as a result. The IDC indicated this trend would continue: 89% of banks reported that they are currently operating with or plan to operate with a hybrid cloud solution, according to the IDC’s 2020 CloudPath survey.

Here are some of its many benefits:

1. Maximizing Benefits

As cloud computing technologies become more sophisticated, banks will be able to minimize data loss better and minimize the time it takes to recover from a disaster, according to the IDC’s report. Cloud computing will help these firms to meet the challenges of the new regulatory environment and keep up with the increasing workloads.

According to the report, the cloud also helps firms reduce their IT infrastructure costs, as the cloud providers have already invested heavily in these areas. Cloud providers also use the latest technology, like virtualization and data storage, making servers and storage more efficient.

2. Protecting Sensitive Information

According to the report, banks can better protect confidential information stored in their data centers by moving it to a cloud computing network, which is the most secure. The cloud provides the best physical security for banks’ most critical data, as it is hosted in separate, secure locations.

3. Increasing Disaster Recovery

Cloud computing will enable banks to better recover from disaster when it strikes, with the ability to recover from any cloud computing environment, according to the IDC’s report. Cloud providers also offer APIs to help financial firms quickly recover from a disaster.

The cloud also helps banks recover from disasters faster, as recovery time can be cut down to three hours using the cloud compared with six hours using on-premise IT solutions, according to the IDC.

4. Minimizing Time to Market

Cloud computing is critical to banks’ ability to innovate. According to the IDC’s report, it allows them to quickly try out new concepts and develop products in a quicker time frame.

5. Cost-Saving Solutions

Cloud computing’s scalability and cost-effectiveness are some of its key benefits, as moving applications to the cloud saves banks money. Cloud providers use economies of scale to their advantage, which also helps banks save money.

According to the IDC, the cloud also helps banks minimize the number of software developers. The cloud providers operate their own data centers, reducing the staff needed to maintain these IT networks.

6. Decreasing the Cost of IT

Cloud computing can help banks decrease the costs of IT operations and maintenance, as the cloud providers operate the data centers and are responsible for data management and disaster recovery, according to the IDC. According to the report, the cloud also allows a single IT staff to manage the infrastructure, drastically reducing the number of IT personnel needed.

7. Increasing Agility and Speed

According to the report, cloud computing will help banks minimize the time needed to develop new products and services while also improving their ability to create new products.

According to the IDC, cloud computing also allows banks to focus more of their resources on supporting new technology, which can help them develop new products.

Conclusion

As banks face increasing regulatory and compliance pressures, these technologies will help them achieve their increased agility and speed goals. According to the report, cloud computing’s highly sophisticated technology also helps banks meet the new regulatory environment.

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