Historically, financial services firms’ delays in adopting a cloud strategy have been mainly due to the security and compliance challenges connected with cloud adoption. Given the nature of financial firms’ services, it would be harmful to compromise any of these priorities. For this reason, and because of the cost concerns associated with moving to the cloud, they were hesitant to divest themselves of legacy systems and data centres.
However, with advances in cloud security, data security stored in the cloud has improved significantly. Cloud providers such as Microsoft offer integrated services to protect data, applications, and infrastructure to detect and respond quickly to rapidly evolving threats. As a result, adoption rates are expected to enhance significantly.
But apart from the guarantee that essential data can be safely protected in the cloud by regulations, why else would companies in this sector decide to take this step? Some other important reasons for migrating from on-premises to the cloud are:
For the business:
- Focus on business agility and elimination of an isolated data storage approach.
- Eliminate the cost of data center management
- Need to extract more excellent value from enterprise data
- Increase efficiency while reducing operational costs
- Secure access to data and third-party applications
For the customer:
- Provide unique services and tailored offerings
- Better anticipate and respond to changing customer requirements
Benefits of moving to cloud for the financial industry
The cloud enables enterprises to integrate different business units by providing a unified platform for data sharing between employees and teams. This leads to better and integrated decision-making processes leading to faster solutions to customer problems and challenges.
Moreover, creating connected or standardized data sets allows your business to gain more sophisticated, actionable analytics and insights.
In the past, security was not considered the most vital aspect of cloud computing. More than 80% of respondents consider it the biggest challenge in using cloud services. Ironically, what is a challenge in cloud migration is now a potential benefit of cloud adoption.
Most cloud providers follow a set of stringent security standards that can even surpass on-premise security measures. Thanks to redundancy, data remains safe even if a server goes down. Financial firms can finally breathe easily with superior protection against malware, viruses, data theft, and data backups. However, it’s essential to note that the quality of security often depends on the cloud migration service provider.
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Once a financial services firm moves from an on-premises solution to a cloud infrastructure, building a robust operation becomes more accessible. The need to tie an employee to a desk is significantly reduced as data and services are virtually available with the click of a mouse. This is a critical capability that has become a must in the WFH world of a global pandemic. It also allows your IT team to reprioritize infrastructure issues and turn to potentially more valuable tasks to the business.
Gone are the days when switching to modern technologies came with high upfront costs. With most cloud service providers, financial institutions use an operations-based pricing mechanism. Scalable computing costs allow you to respond quickly to changes or changing market dynamics. Computing capacity can be increased or decreased effortlessly after cloud migration. This facilitates cost efficiency and granular cost control.
Lower maintenance costs
With less infrastructure to maintain on-premises, the cost of maintaining your infrastructure daily decreases significantly. With fewer devices and tools to keep on hand, the cost of upgrading cloud technology also goes down. With less software, multiple servers, supporting devices, and other hardware to purchase and store, financial services firms benefit from lower maintenance and operations expenses.
Improved customer and employee experience
A cloud migration strategy enables financial services firms to guide business innovation. It becomes easier to develop high-quality customer experiences and streamline operations. Advanced analytics provide insights into customer behaviour, giving your teams the correct information to personalize offers, optimize products, and improve customer satisfaction.
To achieve their value creation goals, financial service providers must take an end-to-end approach to cloud migration. Cloud migration services have drastically adapted to the regulations and needs of the industry. Your organization can achieve better business outcomes with cloud computing – including increased employee productivity. By putting the cloud at the centre of your business transformation, you can realize its immense potential.
iSmile Technologies work with companies in the financial services sector to ensure a smooth transition to the cloud without disrupting business processes and compliance with applicable regulations by strategically planning Azure migration and cloud services.