In today's dynamic world, the cloud is helping banks transform their business and take it to a new level without the factors of time and money getting in the way. Cloud computing helps to create a more flexible and agile business model to take care of growing business needs. It creates an opportunity for bankers to connect with their customers directly.
Cloud computing helps to create new markets and services to differentiate from competition and improve the ways customers' access and use the bank's products and services. With cloud computing, banks will be able to provide consistent service to customers across all branches, all over the world and also include a large amount of customer information and analytics which will allow them to further customize and serve customers better.
Some of the benefits of the amalgamation of analytics and cloud computing for banks and financial institutions are
Although a technology that cannot be ignored, there are a few concerns specifically for cloud computing in banking. The deployment models mean an environment sprawl and a lack of control for change management which could lead to security risks, reliability issues and inability of effective business continuity planning. Absence of core application solutions has slowed down the process further. Some of these solutions are regulation, location, liability and retrieval in the cloud which has prompted most banks to opt for mini 'private' infrastructure clouds.
With the application of standardized processes and workflows, the risk of implementation lessens and established change management practices are promoted. Due to legitimate concerns about the external cloud and its criticism, banks have used technology to deliver IT as a service to internal users, which is the 'internal' or 'private cloud.'
Private clouds have their place in enterprise IT, but they might not provide the cost benefits, economies of scale and ROI associated with public clouds. Customers looking to leverage the cloud for complex workloads which need high levels of security and compliance are finding the private cloud model lacking. For certain workloads such as collaboration they look to leverage public clouds which provide them with an OPEX model. Banks today are mostly using private clouds but they must turn to external clouds to take advantages of all the benefits that it comes with.