The Future of Banking Industry in the Cloud Technology Environment

1. The Future of Banking Industry in the Cloud Technology Environment Technology evolution ignites changes in every aspect of business with no exception to the banking industry. The benefits that banks enjoy from cloud technology span from effective collaboration to new customer experiences. Banks run to use cloud computing whenever there is economic uncertainty or demanding customers. They can align increased services demands with a strong network of customer relationship using cloud technology. Research indicates that the banking industry will grow to over 42 trillion by 2020. The effects of cloud computing are a major contributor to this growth. Cloud computing will help the fast growth by modernizing standards of banking and increasing demand for services. It can configure and reconfigure all other technologies virtually. Banks can deploy those services and networks that cost them less. They can create friendly customer environment through an innovative framework of services. It is clear that cloud computing will take the banking sector into places they have never been. Here are the milestones this financial industry will derive from cloud technology: 1.Enhanced Banking Mobility Mobility in banking becomes possible through online banking, and this used to take place on PCs for a while. Recently, mobile banking has been in use widely by use of smartphones. Cloud computing is a significant enabler in this phenomenon. People now expect to transact multiple times and at any time every day. This has consequently brought changes in the way the banks provide these services. The growing use of online services continually tests online providers. Thus, they seek reliable means to provide for increasingly changing customer demands. The good news is that cloud computing has arrived to rescue the situation. The bankers can, therefore, avail these services demanded at a lower cost than the traditional methods. Cloud service providers, on the other hand, will continually seek to model their platforms to support changes as they emerge. This will immensely change the way things are done now from what was happening before. An illustrative example is a situation of credit card providers on black Monday. Mastercard had to offer service to over 25% increase in traffic with about 4 million transactions per hour. This institution had to upgrade its infrastructure to accommodate the situation, but it was quite uneconomical being a one-day issue. Today, a situation like this is easily manageable because of cloud

2. computing and at no extra cost. It just requires to move the front-end system to the cloud and they acquire the ability to scale at a moment’s notice. 2.Data Protection Having a lot of data transmitted online necessitates data security to be high up on the agenda. Thus, there is the need to have a data backup, duplicate, compress and restore data fast. There is a need for an answer that permits banks to maintain their infrastructure. It should, as well, enable handling even more massive amounts of data. The cloud space is the perfect place for this performance. Through cloud infrastructure services, banks can move a vast amount of data over a Wide Area Network (WAN). Banks can use PORTrockIT, a WAN data acceleration tool to make the most of different cloud types. Today time and data are equally important, therefore reducing latency and packet loss will make everything work fine. Cloud services enable data to be encrypted and compressed during transmission. This is something that lacks in traditional WAN optimization solutions. With the right cloud approach and solutions, banks can achieve data protection through fast, secure and unhindered data movements. Deploying artificial intelligence and machine learning will be paramount. 3.Reduced Complexity in the Banking System In a pure cloud system, everything is bound together. Thus, networking types of equipment, management, in-built security systems are interlinked. There is no need whatsoever to integrate components together. The cloud will resolve all the complexities at the IT level and improve better customer experience. Traditionally, the new technology would mean embracing more collaboration tools without replacing or reducing the old ones. The result becomes a tangle of overlapping and redundant systems that cost banks a lot of money. This translates to low innovations and also hinders the financial institution from discovering new business opportunities. Cloud-based applications are less costly and easier to manage compared to traditional applications that banks have been using. You only need a new technique to develop a cloud-based application. An example of a new method is the mphasis cloud application service which ensures an application is fully customized from planning to design process.

3. In conclusion, there is much that the cloud technology will continue to offer in the banking industry. It will be helpful to both the banks and their customers. Cloud computing services improve bank-customer relationship as well as speeding up marketing for the bank. Therefore, every bank should consider cloud computing as a way to secure a competitive edge in the market space.