Utilization of Cloud Computing Technology in The Banking Sector

We all admit that cloud computing provides many benefits in providing flexibility and scalability of computing systems in the business environment. However, from the various advantages provided, cloud computing also still poses concerns for its users, especially those related to security systems. Banking is one sector that is very vulnerable to security issues like this.

Referring to the results of a survey released by the Cloud Security Alliance in 2015, security issues still dominate the reluctance of IT policy makers in various companies such as banking to adopt cloud-based solutions. Concerned security issues such as the occurrence of data breaches, impenetrable access controls, to general cyber attacks such as the spread of malware or viruses.

Banks in implementing cloud systems in their operations still face challenges in the form of complexity, fragmented operations, and costs for managing public and private clouds. So a solution is needed to be able to face this challenge so that cloud computing technology or cloud computing can run well in the banking system.

Cloud Computing Supports Application of Risk Management in the Use of Information Technology by Commercial Banks

There are three steps that every player in the financial services industry needs to go through to start implementing cloud technology in their services.

The first step is to replace the infrastructure that is more digital and cloud ready first. This is important because a more capable infrastructure is needed for cloud system implementation.

Then, the second step is to prepare an application that is able to apply the cloud system. The implementation of cloud systems will be easier with banking and financial applications based on cloud technology. When the application is ready, begin to enter the third stage, which is multi-cloud deployment.

Concerns about security issues also prompted the government to implement strict rules regarding the implementation of cloud technology for the banking sector in Asia Pacific. There are many regulation that recommends that the data center-premise is located in the country  concerning the Application of Risk Management in the Use of Information Technology by Commercial Banks.

Apart from security issues, cloud technology for the banking sector can indeed provide efficiency in various computing systems in it.

Not only for storing a data file, according to F5 Networks Senior Field System Engineer, the use of cloud computing in this sector can be expanded to a wider area, including enabling workload mobility, regulating returns of equality, making the system more efficient. customer-centric, encouraging continuous innovation, and making it easier to test new platforms that will be implemented in the banking system.

How Cloud Computing Eases Banking IT Productivity?

Workload mobility brings flexibility and agility to banking IT systems, which was previously impossible due to limited hardware and storage devices. By eliminating unnecessary workloads on the operating system, as well as the storage device and server layers, the bank’s IT team is now able to quickly deploy applications whenever needed.

According to Gartner, poor return on equity will drive more than 60 percent of banks worldwide to process most of their transactions in the cloud. Cloud can also help them to increase utilization rate. However, at the same time it can also reduce investment in on-premise equipment and software licenses.

The increasingly fierce competition in the banking sector forces banks to be able to present a variety of new services, which are in accordance with the needs and desires of their customers and prospective customers, for the sake of business continuity. One effective tool to make this possible is big data analytics.

By utilizing this tool, banks will be able to identify and maximize the potential of emerging trends in society. However, the large investment costs required to build the on-premise infrastructure of this tool are a formidable challenge for banks, especially in the current economic climate. Therefore, the cloud is increasingly becoming the right choice as a platform for big data analysis.

Innovation is One of The Reasons Why The Cloud is Increasingly in Demand by Banks

Innovation is one of the reasons why the cloud is increasingly in demand by banks. Banks are always looking for ways to quickly offer their customers various service innovations and the latest features on various platforms, in order to increase their advantage.

Cloud is the answer because it offers an optimal capability for service delivery to these various platforms. This has triggered increased interest in banks for this technology, especially in cloud orchestration solutions to manage multiple applications spread across data centers.

The cloud offers banks the opportunity to accelerate the time it takes to test and deploy new services, which are needed by their customers and their own employees. With shorter service development cycles, increasing demand for new services and resistance to software that is not yet fully ready, more and more banks are using the cloud as a platform for service trials.

Security may still be a frightening specter for the banking industry to implement cloud technology. However, the five things above prove that despite concerns and fears about the cloud, the technology can still be utilized by banks and is able to synergize with the existing on-premise data center.

What is The Role of Cloud Computing in The Banking Area?

Some additional infrastructure must also be equipped with banking in the application of cloud to its IT system. That way, in the future, banks can enjoy safe and comfortable data storage services in using IT systems.

The use of the cloud in banking digitalization will not only make it easier for customers to make digital transactions, but can also increase the national financial inclusion rate. The application of cloud computing systems in banking services is not easy.

The role of cloud computing in the banking area starts from a comparison between traditional banking, open banking (today), and banking platforms (future), to a detailed explanation of data security in cloud computing.

The use of cloud computing in banking digitalization not only makes it easy for customers to make digital transactions, but also can increase the national financial inclusion rate.

Financial industry players can start choosing a cloud service provider that suits their application needs and business needs. The right choice can improve business efficiency and digital services for their business.

Furthermore, with the use of cloud computing technology, operational work becomes more practical and there is no need to use a large infrastructure. Cloud Computing can even minimize expenses. There are many benefits of using cloud computing including elasticity, affordability, availability, security, innovation, and agility.

Leave a Reply

Your email address will not be published.