How Can the Banking and Financial Industry Focus on Cloud-Based Revenue Opportunities
Cloud has always been a catalyst for enterprise business transformation. But today it’s a game-changer for financial services firms.
You would agree businesses in the banking and finance sector have to be ready to deliver on ever-changing consumer expectations. They need to start putting tech-led strategies to help shape their future. And an important aspect of this shifting landscape is cloud-based environments. It is moving to the forefront faster than we can imagine.
Today, many financial institutions have already identified the technology’s potential as a revenue driver. This is beyond just reducing costs or improving operating efficiency. In my opinion, cloud-based apps can help unlock new revenue sources to get a competitive edge. Let’s discover more:
Transforming customer care function
The evolution of cloud-based systems has enabled banks to focus more on their customers. The technology creates an opportunity for bankers to connect with their audience directly. Due to digital services, they can maintain engaging customer relations. Anywhere. Anytime.
Further, the use of AI, automated interactions & connected data on a cloud platform offers their customers a highly personalized and efficient experience. The speed of delivery and ease of use reduces the time and efforts of the customers. For banks, integrating cloud solutions also proves to be cost-effective.
Improving risk management
A vital aspect of the cloud enables systems to reduce risk factors related to the data center and its infrastructure. Banking institutions can use cloud-based data to generate insights to prevent potential fraud. They can limit risks by correlating data from multiple sources. It also ensures that confidential data is completely secured. When implemented correctly with skilled security, cloud environments can become more secure than on-premises. Thus, teams can focus on the business rather than securing data and reducing risks.
Enhancing work efficiency with remote working
Cloud technology offers a disruptive advantage to the banking and finance sector. Overall, it increases the efficiency of the industry. Thanks to digitized services, businesses can scale up systems to provide the best service to the customers. Due to cloud-based systems, businesses can enable team members to work effectively from remote locations. With enhanced systems, financial institutions can further improve the way their teams connect and collaborate. All in a more efficient and secure environment.
Developing an ecosystem for products launches
The systems enable banks to identify ecosystems to launch products or alliances. It can help enhance collaboration through new platforms and tools. Not to forget the insights and analytics that it brings. Together, it empowers the teams to make informed decisions, faster.
Exploring new growth channels
Banking and financial institutions need to develop new channels to discover new routes to revenue. The aim is to increase the speed and agility needed to meet customer needs. Also, it is required to meet the regulatory requirements. Predictive analytics, driven by account behavior, can be used to suggest the next-best offers. The deeper the analytics work, the better it is for the business.
Addressing ever-growing data input demands
Till now banks have been slow in adopting cloud environments. The concerns of reliability and security risks being the prime reasons. But to address the ever-growing data input demands, the banking industry is leaping. The fact that the systems can be modified without any disruption, is also an added advantage.
Cloud technology has proven to be cost-effective, faster & flexible. It is now seen by bankers as an critical part of their IT strategy. In my experience, leaders are seriously considering how they can leverage the cloud in as many areas as they can. The aim is to drive improved business performance and shareholder returns. This technology is a vital force that drives the market for banking and finance institutions. Across the globe, financial services firms are choosing private, public, and hybrid cloud solutions. Based on the various engagements I’ve led, the cloud gives them the liberty to create innovative products and services to match their customer needs. It can also fuel enterprise transformation and ultimately redefine the way they work.
The future of banking is likely to be very different from today. How can you drive cloud-based transformation in your organization for a successful future? Let me know your thought in the comments.
Kandarp Shah is a technical leader spearheading the Microsoft solutions practice at Rishabh Software. He has 15+ years of experience and understands how to use emerging tech to build solutions helping client’s business growth. He is an expert in driving the practice around Business Intelligence, IoT, Big Data, Mobile and more. If not working, Kandarp enjoys cooking, reading and interacting with young tech leaders.