Everyone’s doing it…except you
Cloud-based technology involving cloud computing and storage has found its way to virtually every other industry except the financial industry. The reason for this is that financial institutions feel that they cannot ensure the security of their data this way.
Since cloud computing involves the use of a network of remote servers to store, manage and process data rather than local servers, and these remote servers are hosted on the Internet, financial institutions do not feel safe using it.
However, cloud-based technology has shown great improvement over the years, particularly in the area of security, and now there are plenty of benefits to be had by financial institutions using this technology.
Better Data Security
Choosing cloud-based technology will grant you better data security than having an onsite system. Data is backed up onto multiple servers across wide geographical areas thereby creating a redundancy that ensures data security without a single point of failure.
In addition to this, you will get in-built protection from viruses and malware, automatic email retention and policy-based encryption. You will also have a multi-layer spam protection implemented in your emails to secure your communication.
Less onsite infrastructure
Information technology hardware takes up a lot of space. As your financial institution grows, your IT needs will also grow requiring more equipment and more space to manage your data.
Rather than incur these additional expenses of multiple servers, supporting equipment, and space requiring to house them cloud computing allows you to store your data offsite cutting on all these costs. You will not have to worry about getting new hardware and software for your data and you get to share liability with your service provider.
Along with this, maintenance costs will also be shifted to the cloud company as part of the service charge you pay them. They will be greatly reduced and you will save both man-hours and money that is usually spent on maintaining onsite infrastructure.
Improve business efficiency
Cloud-based technology allows for increased efficiency and agility for your financial institution. It enables your employees to work from anywhere as long as they have Internet access. This ensures that work can be done anywhere and anytime hence improving productivity and efficiency. For instance, staff can access relevant information for a debt review without having to go to the office.
The IT department will also be more efficient having the burden of mundane infrastructural and software issues handled offsite. They will be able to focus on innovative projects that are moving your business forward rather than ‘housekeeping’ concerns.
Larger capacity for evolution
As your company grows and evolves, the IT infrastructure needs will have to change to affect this evolution. Having those on-site makes this difficult since you have to make those changes yourself. However, cloud services have a great capacity to adapt to change thereby allowing your institution to evolve and grow as much as it can sooner and at a cheaper cost.
Seeing all these benefits and a credible counter to the security issue, cloud-based services are certainly the way to go for your financial services.