Tuesday, December 6, 2022
Published 2 Months Ago on Monday, Oct 10 2022 By Mohamad Hashisho
The world of finances has seen a technological overhaul. Modern problems require modern solutions. A cloud bank is the updated solution to a chronic problem of what to do with your financial assets, an age-old matter you need to settle down as soon as you strive for financial independence. At this point, it is not a matter of how cloud banking will replace legacy banking. It is a matter of when.
The Cloud banking sector improved on many shortcomings its legacy counterpart had. Ranging from minor tweaks to massive leaps in performance and service quality. Cloud banks paid more attention to the minor areas that can have a butterfly effect on the operation flow.
Firstly, a cloud bank had to shake off some security concerns that came along with the territory. Legacy banking skeptics always point out security concerns regarding the cloud. Cloud banking proved secure, especially when Digital banks took precise measures. Verification requirements, paired with employee education and limiting access, proved to work wonders regarding security improvements. Fintech adopters take security measures very seriously, and with the proper infrastructure, it is not riskier than traditional banking.
This is mainly done by utilizing encryption, which allows cloud banks to not relinquish control of data protection regardless of its location. Encrypting data and information renders them safe to transfer between banks using the network, and even in the cloud. Your encrypted data is always safe from intruders.
Moreover, overseeing data is a top priority for a fintech such as a cloud bank. Cloud banking requires identity verification and intricate account management. A cloud bank needs to study your balance and spending habits while ensuring everything goes smoothly. And for that, data is critical. With Digital banking, all your data and information are secured and easily accessible to ensure your financial needs are always available without the hassle of extra workers and IT workers, and traditional receptionists.
Cloud banks made such intricate levels of data handling possible, by building a rigid infrastructure, allowing multiple branches from the same bank to experience true networking unity by sharing one cloud. Overseeing all the needed data in one place allows for more efficient work methods. For example, why waste time on meetings and phone calls when cloud banks already automated most of the process?
The agility offered by a Cloud bank is almost uncontested. After recent events, the need for an agile banking system grew immensely. The average consumer’s needs and expectations have been updated to suit the pace of the current everyday life even more. Rapid service and convenience are decisive factors pushing the world towards cloud banking.
Additionally, Legacy banks lack the technological know-how to keep up with the changing pace of the industry. Customer and market demands are as dynamic as ever. Cloud banking allows a quick transition and pacey transformation with its proper infrastructure.
Finally, the in-demand nature of a cloud bank makes the business module more agile and ready for the customer’s ever-evolving needs. Big legacy banks like Wells Fargo and Morgan Stanley are already in contact with Microsoft to prepare for the transition to the cloud.
Experts pride their cloud solution adoption on how cheap it is. Cloud banking allows banks to minimize many costs associated with on-site work environments. No maintenance budget allocation is required. Fewer employees are needed since most cloud bank users manage transactions via various fintech apps. It is cheaper to pay for a digital presence instead of racking up bills to maintain a physical bank. Different banks pay further costs to manage a physical archive they probably won’t need, or it’ll be too complicated to access when required.
Besides the obvious fewer workers and fewer branches to manage thus saving money aspect, we have the CapEx independence factor. Cloud banks allow you to ditch the expenses of the costly CapEx model for IT business expenses. Cloud strategy adoption gives companies the operational expenses (OpEx) model route to choose. Even though you are still paying for OpEx, software, and hardware bills. It is a better investment spanning over the lifetime of your bank presenting you with the bonus of not worrying or dealing with this again.
After the recent pandemic and life events, the world had to adapt quickly, so even if the financial world was not ready for Cloud banking, it is undoubtedly prepared now. Clients have already made the transition, which is ironic since banks are still reluctant to make the jump. Yet their clients are already trusting its potential, especially the younger clients.
Furthermore, the cloud thrives on its potential for immense scalability and innovation at its center. Without the current strides in fintech, the advancement we now see in the financial world will be impossible. Many companies survived by shifting to other operation methods and implementing various fintech solutions.
Finally, the opinion that the cloud is merely a cost-reduction tactic is long gone. Sticking to such a fossil of an argument will cost you to lose your seat in the future world of banking. The pace of change is simply too fast for banks to hold on to their relic methods of operations.
A cloud bank is not an accessory in the financial future. It is a prominent player. Fintech is not a fluke. Cloud solutions are not either. Bankers must make necessary choices to ensure that the massive wave of technological advancement does not swallow them. If your client and target group believe in a concept such as cloud banking and you do not, the winner is clear. The many losers of this battle would wish they could make the choices sooner.
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